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L Pi, P2 Exercise 24-8 Payback period and accounting rate of return on investment B2B Co. is considering the purchase of equipment that would allow

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L Pi, P2 Exercise 24-8 Payback period and accounting rate of return on investment B2B Co. is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment is expected to cost $168,000 with a 12-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 67,200 units of the equipment's product each year. The expected annual income related to this equipment follows 105,000 Sales Costs Materials, labor, and overhead (except depreciation on new equipment) Depreciation on new equipment Selling and administrative expenses 56,000 14,000 10,500 80,500 24,500 Total costs and expenses Pretax income Income taxes (40%) 9,800 Net income 14,700 1. Compute the payback period. Payback Period Denominator:Payback Period Payback period Choose Choose Numerator

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