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 $220,000 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 3376,000 Conta Materials, labor, and overhead except depreciation) Depreciation on new equipment Selling and administrative expenses Total cost and expenses Pretax income Income Tax (355) Net Income 190,000 44.000 32,500 266,500 109,500 30,325 $ 71, 175 Required: (1) Compute the payback period. Choose humerator Payback Period Choose Denominator Payback Period Payback period (2) Compute the accounting rate of return for this equipment. Accounting Rate of Return Choose Denominator Choose Numeraton Accounting Rate of Return Accounting rate of retum