Exercise $24-6($Algo$)$ Payback period, equal cash flows, and accounting rate of return LO P$1,$ P$2$

B$2$B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $$120,000$ and has a $12-$year life and no salvage value. The expected annual income for each year from this equipment follows.

Sales of new product$($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 ARequired BRequired CCompute the annual net cash flow.

$\backslash$table$[[$Annual Results from Investment,Income,Cash Flow$],[$Sales of new product,$$,75,000,],[$Expenses$],[$Materials$,$ labor, and overhead $($except depreciation$),,40,000,],[$Depreciation$-$Equipment,,$10,000,],[$Selling$,$ general, and administrative expenses,,$7,500,],[$Income$,$$$,17,500,],[$Net cash fiow,,,$]]$