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 $360,000 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. $ 383,000 Sales Costs Materials, labor, and overhead (except depreciation) Depreciation on new equipment Selling and administrative expenses Total costs and expenses Pretax income Income taxes (40%) Net income 199,000 60,000 32,000 291,000 92,000 36,800 $ 55,200 Required: (1) Compute the payback period. Payback Period Choose Denominator: 11 Choose Numerator: Payback Period Payback period 11