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 $456,000 with a 12-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 182,400 units of the equipment's product each year. The expected annual income related to this equipment follows. $ 285,000 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 (30%) Net income 152,000 38,000 28,500 218,500 66,500 19,950 $ 46,550 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 accounting rate of return for this equipment. Accounting Rate of Return Choose Denominator: Choose Numerator: = = Accounting Rate of Return Accounting rate of return 0 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 $371,200 with a 10-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 148,480 units of the equipment's product each year. The expected annual income related to this equipment follows. $ 232,000 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 (30%) Net income 81,000 37, 120 23,200 141,320 90,680 27, 204 $ 63,476 If at least an 9% return on this investment must be earned, compute the net present value of this investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Chart Values are Based on: n = Select Chart Amount x PV Factor = Present Value Net present value 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 $456,000 with a 12-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 182,400 units of the equipment's product each year. The expected annual income related to this equipment follows. $ 285,000 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 (30%) Net income 152,000 38,000 28,500 218,500 66,500 19,950 $ 46,550 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 Numerator: T Choose Denominator: = Payback Period Payback period