Carlos Reyes is considering the purchase of equipment for Business Solutions that would allow the company to add a new product to its computer fumiture line. The equipment is expected to cost $300,000 and to have a six-year life and no salvage value. The equipment is expected to generate income of $12,939 and net cash flow of $62,939 in each year of its six-year life. Santana requires an 8% return on all investments. Required: 1. Compute the payback period. (Round your final answer to 2 decimal places.) 2. Compute the accounting rate of retum. (Round your final answer to 2 decimal places.) 3. Compute the net present value. (Do not round your intermdediate calcluations; Round your final answer to the nearest whole dollar.) 15 16 17 18 1. 4.76 years 19 20 2. 28.10% 21 22 3. 23 24 25