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 $300,000 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 375,000 Sales Costs 200,000 Materials, labor, and overhead (except depreciation) 50,000 Depreciation on new equipment Selling and administrative expenses 37,500 287,500 Total costs and expenses 87,500 Pretax income Income taxes (30%) 26,250 Net income 61,250 Required (1) Compute the payback period Payback Period Choose Numerator Choose Denominator Payback Period Payback period