B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $120,000 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 Insom 19.3 Health in the United States $ 75,000 40,000 10,000 7,500 $ 17,500 canvas.unl.edu/courses/105661/.../2478005 (a) C (b) Compute the payback period. (c) Compute the accounting rate of return for this equipment. 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 $ 75,000 40,000 10,000 7,500 $ 17,500 < Required A Required B > Required A Required B Required C Compute the payback period. Numerator: Payback Period Denominator: < Required A = Payback period = Required C > Required A Required B Required C Compute the accounting rate of return for this equipment. Accounting Rate of Return Numerator: I Denominator: = Accounting rate of return < Required B Required C >