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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 equi pment is

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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 equi pment is expected to cost $192,000 with a 12-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 76,800 units of the equipment's product each year. The expected annual income related to this equipment follows. $120,000 Sales Costs Materials, labor, and overhead (except depreciation on new equipment) Depreciation on new equipment Selling and administrative expenses Total costs and expenses Pretax income Income taxes (50%) 64,000 16,000 12,000 92,000 28,000 14,000 $ 14,000 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 2 Required 1 Compute the payback period. Payback Period Payback Period Payback period Choose Choose Numerator: Denominator: B2B Co. is considering the purchase of equipment that would allow the company to add a new product to its line. The equip expected to cost $192,000 with a 12-year life and no salvage value. It will be depreciated on a straight-line basis. The cc expects to sell 76,800 units of the equipment's product each year. The expected annual income related to this equipment follo Sales $120,000 Costs Materials, labor, and overhead (except depreciation on new equipment) Depreciation on new equipment Selling and administrative expenses Total costs and expenses Pretax income 64,000 16,000 12,000 92,000 28,000 14,000 Income taxes (50) $ 14,000 Net income 1. Compute the payback period. 2. Compute the accounting rate of return for this equipment. Complete this question by entering your ansswers in the tabs below. Requirep 2 Required 1 Compute the accounting rate of return for this equipment. Accounting Rate of Return Accounting Rate of Return Choose Denominator: Choose Numerator: Accounting rate of return

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