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please help with the following below! thanks B2B Company is considering the purchase of equipment that would allow the company to add a new product
please help with the following below! thanks
B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $192,000 and has a 12-year life and no salvage value. The expected annual income for each year from this equipment follows. Sales of new product $ 120,000 Expenses Materials, labor, and overhead (except depreciation) 64,000 Depreciation-Equipment 16,000 Selling, general, and administrative expenses 12,000 Income $ 28,000 (a) Compute the annual net cash flow. (b) Compute the payback period. (c) Compute the accounting rate of return for this equipment. Compute the annual net cash flow. Income Cash Flow $ 120,000 Annual Results from Investment Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Equipment Selling, general, and administrative expenses Income 64,000 16,000 12,000 28,000 $ $ 0 Net cash flow Required A Required B > Step by Step Solution
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