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B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $384,000

B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $384,000 and has a 12-year life and no salvage value. The expected annual income for each year from this equipment follows.image text in transcribedimage text in transcribedimage text in transcribed

B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $384,000 and has a 12-year life and no salvage value. The expected annual Income for each year from this equipment follows. $ 240,000 Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Equipment Selling, general, and administrative expenses Income 128,000 32,eee 24, eee $ 56, mee (a) Compute the annual net cash flow. (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 Compute the annual net cash flow. Annual Net Cash Flow Net cash flow Complete this question by entering your answers in the tabs below. Required A Required B Required Compute the accounting rate of return for this equipment. Accounting Rate of Return Numerator: Denominator: 1 1 Accounting rate of return

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