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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 $205,000 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. $ 376,000 Sales Costs Materials, labor, and overhead (except depreciation) Depreciation on new equipment Selling and administrative expenses Total costs and expenses Pretax income Income taxes (35%) Net income 198,000 41,888 32,888 271,888 105, eee 36,750 $ 68,250 Required: (1) Compute the payback period. Payback Period Choose Denominator: Choose Numerator: 1 Payback Period Payback period = (2) Compute the accounting rate of return for this equipment. Accounting Rate of Return Choose Denominator: Choose Numerator: Accounting Rate of Return Accounting rate of return /