Exercise 24-6 (Algo) Payback period, equal cash flows, and accounting rate of return LO P1, P2 B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $312,000 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 Expenses Materials, labor, and overhead (except depreciation) Depreciation-Equipment Selling, general, and administrative expenses Income (a) Compute the annual net cash flow. (b) Compute the payback period. (c) Compute the accounting rate of return for this equipment. $ 195,000 104,000 26,000 19,500 $ 45,500 Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the annual net cash flow. Annual Results from Investment Sales of new product Expenses Income Cash Flow $ 195,000 $ 45,500 104,000 0 26,000 26,000 19,500 0 $ 45,500 $ 19,500 < Required A Required B Materials, labor, and overhead (except depreciation) Depreciation-Equipment Selling, general, and administrative expenses Income Net cash flow Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the payback period. Payback Period Numerator: Denominator: = Payback period = < Required A Required C > Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the accounting rate of return for this equipment. Numerator: Accounting Rate of Return 1 Denominator: = Accounting rate of return 0 < Required B Required C >