B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $144,000 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. $ 90,000 48,000 12,000 9,000 $ 21,000 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 Cash Flow 90,000 48,000 12,000 9,000 $ 21,000 < Required A Required B > Required A Required B Required C Compute the payback period. Payback Period Numerator: Denominator: = Payback period < Required A Required C > Required A Required B Required C Compute the accounting rate of return for this equipment. Numerator: Accounting Rate of Return Denominator: = Accounting rate of return < Required B Required C > Pablo Company is considering buying a machine that will yield income of $3,400 and net cash flow of $20,200 per year for three years. The machine costs $59,400 and has an estimated $9,000 salvage value. Pablo requires a 5% return on its investments. Compute the net present value of this investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) Note: Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign. Round your present value factor to 4 decimals. Years 1-3 Totals Net present value Present Value of Net Cash Flows X PV Factor = Net Cash Flows = = || II || =