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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 $336,000
B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $336,000 and has a 12-year life and no salvage value. The expected annual income for each year from this equipment follows. $ 210,000 Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Equipment Selling, general, and administrative expenses Income 112,000 28,000 21,000 $ 49,000 (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 Compute the annual net cash flow. Annual Net Cash Fl Net cash flow Required A Required B > B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $336,000 and has a 12-year life and no salvage value. The expected annual income for each year from this equipment follows. $ 210,000 Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Equipment Selling, general, and administrative expenses Income 112,000 28,000 21,000 $ 49,000 (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 Compute the payback period. Payback Period Denominator: Numerator: 1 1 Payback period B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $336,000 and has a 12-year life and no salvage value. The expected annual income for each year from this equipment follows. $ 210,000 Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Equipment Selling, general, and administrative expenses Income 112,000 28,000 21,000 $ 49,000 (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 accounting rate of return for this equipment. Accounting ate of Return Denominator: Numerator: 1 Accounting rate of return 0
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