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 $408,000 with a 12-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 163,200 units of the equipment's product each year. The expected annual income related to this equipment follows. Sales $ 255,000 Costs Materials, labor, and overhead (except depreciation on new equipment) Depreciation on new equipment Selling and administrative expenses Total costs and expenses Pretax income Income taxes (30%) Net income 136,000 34,000 25,500 195,500 59,500 17,85 $ 41,650 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: 1 Payback Period Payback period = 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 II