Exercise $26-6($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 $$240,000$ and has a $12-$year life and no salvage value. The expected annual income for each year from this

equipment follows.

$($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.

Compute the payback period.Exercise $26-6($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 $$240,000$ and has a $12-$year life and no salvage value. The expected annual income for each year from this

equipment follows.

$($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.

Compute the accounting rate of return for this equipment.