R. B. 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 $384,000 with a 12-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 153,600 units of the equipment's product each year. The expected annual income related to this equipment follows. 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 (501) Net Income $ 240,000 128,000 32,000 24,000 184.000 56,000 28.000 $ 20,000 1. Compute the payback period 2. Compute the accounting rate of return for this equipment Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required: Required 2 Compute the payback period Choose Numerator: Cost of investment $ Payback Period Choose Denominator Annual net cash flow $ 153,600 - Payback Period Payback period 2.50 Years 384,000 Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion 3 ULUCULUTUHY WILHADE VI UTK WIL WULIU GUW Wany w OU GEWIVULLE WISH YURID expected to cost $384,000 with a 12-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 153,600 units of the equipment's product each year. The expected annual income related to this equipment follows. $ 240,000 33 ins Sales Costa 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 (501) Net income 128,000 32,000 24.000 184,000 56.000 28,000 $ 20.000 1. Compute the payback period. 2. Compute the accounting rate of return for this equipment Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the accounting rate of return for this equipment Accounting Rate of Accounting Rate of Retur Choose Denominator: Annual average Investment 192,000 Choose Numerator 1 Annual for tax net income 33,600 Return Accounting rate of return % 17.50 Mc Graw Hill