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 $240,000 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. $ 150,000 80,000 20,000 15,000 $ 35,000 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: Accounts receivable / Annual net cash flow = = || II Payback period 0