B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $96,000 and has a 12-year life and no salvage value. The expected annual income for each year from this equipment follows.

Sales of new product	$ 60,000
Expenses
Materials, labor, and overhead (except depreciation)	32,000
DepreciationEquipment	8,000
Selling, general, and administrative expenses	6,000
Income	$ 14,000

(a) Compute the annual net cash flow. (b) Compute the payback period. (c) Compute the accounting rate of return for this equipment.