Serial Problem Business Solutions LO P1, P2 Santana Rey is considering the purchase of equipment for Business Solutions that would allow the company to add a new produ its computer furniture line. The equipment is expected to cost $225,000 and to have a five-year life and no salvage value. It will b depreciated on a straight-line basis. Business Solutions expects to sell 100 units of the equipment's product each year. The expec annual income related to this equipment follows 384,000 Costs 195,000 45,000 31,500 Materials, labor, and overhead (except depreciation) Depreciation on new equipment Selling and administrative expenses Total costs and expenses Pretax income 112,500 39,375 73,125 (35%) Income taxes Required: (1) Compute the payback period. Answer is complete and correct. Payback Period Choose Payback e Nu Cost of investment 22500 118,1251.9 years 14 of 15 Next >