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please explain with steps part 1 part 2 part 3 B2B Company is considering the purchase of equipment that would allow the company to add
please explain with steps
B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $384.000 and has a 12-year life and no salvage value. The expected annual income for each year from this equipment follows. 5 240,000 Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation Equipoent Selling, general, and administrative expenses Income 128,000 32,000 24.000 $ 56,000 (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 annual net cash flow. Annual Not Cash Flow Income Depreciation Equipment Net cash flow 32.000 Required 8 > B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line The equipment costs $384,000 and has a 12-year life and no salvage value. The expected annual income for each year from this equipment follows. $ 240, eee Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Equipment Selling, general, and administrative expenses Income 128,000 32,000 24,000 $ 56,000 (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 a Compute the payback period. Numerator Payback Period Denominator Payback period B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $384,000 and has a 12-year life and no salvage value. The expected annual income for each year from this equipment follows $ 240,000 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 128,000 32,000 24,000 $ 56,000 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 part 1
part 2
part 3
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