B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $264,000 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. $ 165,000 88,000 22,000 16,500 $ 38,500 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 0 < Required B Required C >