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 $275,000 and to have a five-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. $380,000 cBook ferences Sales Costs Materials, labor, and overhead (except depreciation) Depreciation on new equipment Selling and administrative expenses Total costs and expenses Pretax income Income taxes (354) Net income 194,000 55, eee 33,000 282,000 98.000 34,300 $ 63,700 Required: (1) Compute the payback period, Payback Period Choose 1 Denominator: Payback Choose Numerator: Payback period nts eBook (2) Compute the accounting rate of return for this equipment. References Accounting Rate of Return Choose Denominator: Choose Numerator - Accounting Rate of Return Accounting rate of retum