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 $384,000 with a 12 year life and no salvage value It will be depreciated on a straight line basis The company expects to sell 153,600 units of the equipment's product each year The expected annual income related to this equipment follows $ 240,000 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 (40 ) Net income 128,000 32,000 24,000 184,000 56,000 22 400 $ 33,600 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 Choose Numerator Cost of investment Payback Period Choose Denominator 1 Annual net cash flow Payback Period Payback period 0 Required 1 Required 2 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 $384,000 with a 12 year life and no salvage value It will be depreciated on a straight line basis The company expects to sell 153,600 units of the equipment's product each year The expected annual income related to this equipment follows $ 240,000 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 (40 ) Net income 19 128,000 32,000 24,000 184,900 56,000 22,400 $ 33,600 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 Choose Numerator Annual after tax net income Accounting Rate of Return Choose Denominator Annual average investment Accounting Rate of Return Accounting rate of return

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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 to cost $384,000 with a 12 year life and no salvage value  It will be depreciated on a straight line basis  The company expects to sell 153,600 units of the equipment's product each year  The expected annual income related to this equipment follows  $ 240,000 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 (40 ) Net income 128,000 32,000 24,000 184,000 56,000 22 400 $ 33,600 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  Choose Numerator  Cost of investment Payback Period Choose Denominator  1 Annual net cash flow Payback Period Payback period 0   Required 1 Required 2   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 $384,000 with a 12 year life and no salvage value  It will be depreciated on a straight line basis  The company expects to sell 153,600 units of the equipment's product each year  The expected annual income related to this equipment follows  $ 240,000 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 (40 ) Net income 19 128,000 32,000 24,000 184,900 56,000 22,400 $ 33,600 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  Choose Numerator  Annual after tax net income Accounting Rate of Return Choose Denominator  Annual average investment Accounting Rate of Return Accounting rate of return

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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

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