B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $96,000 and has a 12-year life and no salvage value. The expected annual income for each year from this equipment follows. $ 60,000 Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Equipment Selling, general, and administrative expenses Income 32,000 8,000 6,000 $ 14,000 (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 Net Cash Flow Net cash flow Compute the payback period. Payback Period Denominator: Numerator: 1 / = Payback period 11 Compute the accounting rate of return for this equipment. Accounting Rate of Return Denominator: Numerator: 1 / Accounting rate of return B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $382,400 and has a 4-year life and no salvage value. B2B Company requires at least an 9% return on this investment. The expected annual income for each year from this equipment follows: (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) $ 239,000 Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Equipment Selling, general, and administrative expenses Income 84,000 95,600 23,900 $ 35,500 (a) Compute the net present value of this investment. (b) Should the investment be accepted or rejected on the basis of net present value? Compute the net present value of this investment. (Round your present value factor to 4 decimals and other final answers to the nearest whole dollar.) Chart Values are Based on: n = 4 i = 9 % Select Chart Amount x PV Factor 2.2370 Present Value 261,505 $ 116,900 $ Present value of cash inflows $ 261,505 Initial investment 382,400 Net present value $ (3,679) X Required A Required B > GTO Incorporated is considering an investment costing $214,720 that results in net cash flows of $32,000 annually for 10 years. (PV of $1. FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) (a) What is the internal rate of return of this investment? (b) The hurdle rate is 8.5%. Should the company invest in this project on the basis of internal rate of return? a. Internal rate of return % b. Should the company invest in this project on the basis of internal rate of return