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B2B Co. is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment is expected
B2B Co. is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment is expected to cost $312,000 with a 12 -year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 124,800 units of the equipment's product each year. The expected annual income related to this equipment follows. 1. Computa the payback period. 2. Compute the accounting rate of return for this equipment. Complete this question by entering your answers in the tabs below. Compute the payback period. Compute the accounting rate of return for this equipment
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