B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $456,000 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 $ 285,000 Expenses Materials, labor, and overhead (except depreciation) 152,000 Depreciation-Equipment 38,000 Selling, general, and administrative expenses 28,500 Income $ 66,500 (a) Compute the annual net cash flow. (b) Compute the payback period. (c) Compute the accounting rate of return for this equipment Required a Required B Required Cash Flow Income 285,000 $ Compute the annual net cash flow. Annual Results from Investment Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation Equipment Seling, general, and administrative expenses 152,000 38,000 28,500 66,500 Income $ Net cash flow $ 0 Regu Required D > (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 payback period. Payback Poriod Numerator: Denominator: Initial investment Annual net cash flow $ 456,000 $ 104,500 Payback period 4.36 years 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 Annual income Average investment 66,500 1 Accounting rate of return