B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $432,000 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 Expenses Materials, labor, and overhead (except depreciation) Depreciation-Equipment Selling, general, and administrative expenses Income (a) Compute the annual net cash flow. (b) Compute the payback period. (c) Compute the accounting rate of return for this equipment. $270,000 144,000 36,000 27,000 $ 63,000 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the annual net cash flow. Annual Dance from Instant www Cach Ela Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the annual net cash flow. Annual Results from Investment Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Equipment Selling, general, and administrative expenses Income Net cash flow Income 270,000 $ Cash Flow 144,000 ( 144,000 76,000 36,000 31,000 27,000 19,000 S 63,000 $ 18,000 Return to question (b) Compute the payback period. (c) Compute the accounting rate of return for this equipment. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the payback period. Numerator: Initial investment Payback Period Denominator: Annual net cash flow Payback period 432,000 (108,000) Required A Required C > Return to question (b) Compute the payback period. (c) Compute the accounting rate of return for this equipment. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the accounting rate of return for this equipment. Numerator: Annual income Accounting Rate of Return Denominator: Average investment Accounting rate of return 63,000 432,000 14.58