Check my work 3 Santana Rey is considering the purchase of equipment for Business Solutions that would allow the company to add a new product to its computer furniture line. The equipment is expected to cost $354,000 and to have a six-year life and no salvage value. It will be depreciated on a straight-line basis. Business Solutions expects to sell 100 units of the equipment's product each year. The expected annual income related to this equipment follows 16.68 points Sales Costs $380,000 eBook Print References Materials, labor, and overhead (except depreciation) 196,000 59,000 33,000 288,000 92,000 27,600 $ 64,400 Depreciation on new equipment Selling and administrative expenses Total costs and expenses Pretax income Income taxes (30%) Net income Required (1) Compute the payback period. Payback Period Choose Denominator: Choose Numerator Payback Period Payback period Cost of investment Annual net cash flow 354,000