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 $364,000 and to have a seven-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. Sales Costs 377,e0 Haterials, labor, and overhead (except depreciation) 191,000 52,000 31,eee Depreciation on new equipeent Selling and administrative expenses Total costs and expenses Pretax income Income taxes (48%) Net income 274,000 103,ee8 41,200 S 61,see Required: (1) Compute the payback period Payback Period Choose Denominator: Choose Numerator: Payback Period Payback period (2) Compute the accounting rate of return for this equipment Accounting Rate of Return Choose Numerator Choose Denominator: Accounting Rate of Return Accounting rate of return