excercise 24-8 payback period and accounting rate of return on investment LO P1,P2

Exercise 24-8 Payback period and accounting rate of return on investment LO P1, P2 B2B Co. is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment expected to cost $312.000 with a 12-year life and no salvage value it will be depreciated on a straight-line basis. The company expects to sell 124,800 units of the equipment's product each year. The expected annual income related to this equipment follows $ 195,000 Sales Costs Materials, labor, and overhead (except depreciation on new equipment) Depreciation on new equipment Selling and administrative expenses Total costs and expenses Pretax income Income taxes (50%) Net Income 100,000 26,000 19,500 149.500 45,500 $ 22,750 1. Compute the payback period 2. Compute the accounting rate of return for this equipment Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the payback period, Payback Period Choose Denominator Choose Numaraton Payback Period Payback period Exercise 24-8 Payback period and accounting rate of return on investment LO P1, P2 B2B Co is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment is expected to cost $312,000 with a 12-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 124,800 units of the equipment's product each year. The expected annual income related to this equipment follows $ 195,000 Sales Costs Materials, labor, and overhead (except depreciation on new equipment) Depreciation on new equipment Selling and administrative expenses Total costs and expenses Pretax income Income taxes (50%) Net Income 104.000 26.000 19,500 149.500 45,500 22,750 $ 22,50 1. Compute the payback period. 2. Compute the accounting rate of return for this equipment Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the accounting rate of return for this equipment. Accounting Rate of Return Choose Denominator Choose Numerator Accounting Rate of Return Accounting rate of retum