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. $ 195,000 Sales Costs Materials, labor, and overhead (except depreciation on new equipment) Depreciation on new equipment Selling and administrative expenses Total costs and expenses 104,000 26,000 19,500 149,500 45,500 13,650 Pretax income Income taxes (30%) S 31,850 Net income 1. Compute the payback period 2. Compute the accounting rate of return for this equipment. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the payback period. Payback Period Choose Denominator: Choose Numerator: / Payback Period Payback period