Exercise 26-6 (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 $144.000 and has a 12-year life and no salvage value. The expected annual income for each year from this equipment follows: $ 90,000 Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation Equipment Selling, general, and administrative expenses Income 48,000 12,000 9,000 $ 21,000 (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 A Required Required (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 A Required B Required Compute the annual net cash flow. Cash Flow Income 90,000 $ Annual Results from Investment Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Equipment Selling general and administrative expenses Income 48.000 12,000 9,000 21,000 s Net cash flow $ Required Required B > D 180 (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 A Required B Required C Compute the payback period. Payback Period Denominator: Numerator: Payback period 0 Complete this question by entering your answers in the tabs below. Required A Required B Required Compute the accounting rate of return for this equipment. Accounting Rate of Return Denominator Numerator: Accounting rate of return 0