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. $ 90,000 Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Equipment Selling, general, and administrative expenses Income 48,000 12, eee 9, eee $ 21,000 (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 c Compute the annual net cash flow. Annual Results from Investment Income Cash Flow $ 90,000 Sales of new product Expenses Materials, labor, and overhead (except depreciation) DepreciationEquipment Selling, general, and administrative expenses 48,000 12,000 9,000 Income $ 21.000 Net cash flow $ 0 Required A Required B Required c Compute the payback period. Numerator: Payback Period Denominator: 1 Annual net cash flow Initial investment = Payback period $ 144,000 1 11 0 Required A Required B Required a Compute the accounting rate of return for this equipment. Numerator: 1 Accounting Rate of Return Denominator: Average investment Annual income / Accounting rate of return 0