please help

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 $348,000 and to have a six-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. $376,000 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 199,000 58,000 34,500 291,500 84,500 29,575 $ 54,925 Required: (1) Compute the payback period. Payback Period 1 Choose Denominator: Annual net cash flow Choose Numerator: Cost of investment Payback Period Payback period 0 (2) Compute the accounting rate of return for this equipment Choose Numerator: Annual after-tax net income Accounting Rate of Return Choose Denominator: Annual average investment Accounting Rate of Return Accounting rate of retum