Hel Santana Rey is considering the purchase of equipment for Business Solutions that would allow the company to add a new product to its computer furniture line. The equipment is expected to cost $329.000 and to have a seven-year life and no salvage value. It will be depreciated on a straight-line basis. Business Solutions expects to sell 100 units of the equipment's product each year. The expected annual income related to this equipment follows $ 383,000 Sales Costs Materials, labor, and overhead (except depreciation) Depreciation on new equipment Selling and administrative expenses Total costs and expenses Pretax income Income taxes (35%) Net income 200,000 47,000 33,500 280,500 102,500 35,875 $ 66,625 Required: (1) Compute the payback period. Payback Period Choose Numerator: Choose Denominator: Payback Period Payback period O Payback Period Choose Numerator: Choose Denominator: 30 Payback Period Payback period 0 1 (2) Compute the accounting rate of return for this equipment Accounting Rate of Return Choose Denominator: Choose Numerator: 1 Accounting Rate of Return Accounting rate of retum