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 equlpment Is expected to cost $360,000 with a 12-year life and no salvage value. It will be depreclated on a straight-line basis. The company expects to sell 144,000 units of the equipment's product each year. The expected annual Income related to this equipment follows. Sales Costs s 225,8e0 12e,8e0 38 , 000 22,5e8 172,588 52,588 1e,580 42,8ee 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 (28%) Net income $ 1. Compute the payback perlod. 2. Compute the accounting rate of return for this equipment Complete this question by entering your answers in the tabs below Required 1Required 2 Compute the payback period Payback Period Choose Numerator: | 1 | Choose Denominator: Payback Period = Payback period Required2 >