LE 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 $408,000 with a 12-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 163,200 units of the equipment's product each year. The expected annual income related to this equipment follows $ 255,000 Sales Costs 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 (20%) Net Income 136,000 34,000 2500 195,500 59,500 11,900 47,600 $ Required 1 Required 2 Compute the payback period. Payback Period Choose Numerator: I Choose Denominator: - Payback Period Payback period 20 Required 2 > Required 1 Required 2 Compute the accounting rate of return for this equipment. Accounting Rate of Return Choose Denominator: Choose Numerator: - = Accounting Rate of Return Accounting rate of return (Required 1