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please correct answers only!!! B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line.
please correct answers only!!!
B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $360,000 and has a 12-year life and no salvage value. The expected annual income for each year from this equipment follows. $ 225,000 Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Equipment Selling, general, and administrative expenses Income 120,000 30,000 38,250 $ 36, 750 (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 c Compute the annual net cash flow. Income Cash Flow Annual Results from Investment Sales of new product $ 225,000 Expenses Materials, labor, and overhead (except depreciation) Depreciation Equipment Selling general, and administrative expenses 120,000 30,000 38.250 36.750 Income $ (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 C Compute the annual net cash flow. Annual Results from Investment Cash Flow Income 225,000 $ Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation Equipment Selling, general, and administrative expenses Income 120,000 30,000 38,250 36,750 $ Net cash flow $ 0 Materials, labor, and overhead (except depreciation) Depreciation-Equipment Selling, general, and administrative expenses Income 120,000 30,000 38,250 $ 36,750 (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 payback period. Payback Period Numerator: Denominator: Payback period 0 (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 accounting rate of return for this equipment. Accounting Rate of Return Denominator: Numerator: Accounting rate of return 0 Step by Step Solution
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