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UT 5 B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment

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UT 5 B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $168,000 and has a 12-year life and no salvage value. The expected annual income for each year from this equipment follows. 10 points $ 105,000 Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Equipment Selling, general, and administrative expenses Income 56,000 14,000 10,500 $ 24, 500 eBook (a) Compute the annual net cash flow. (b) Compute the payback period. (c) Compute the accounting rate of return for this equipment. Hint Print Complete this question by entering your answers in the tabs below. References Required A Required B Required C Compute the annual net cash flow. Annual Net Cash Flow Net cash flow UT 5 B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $168,000 and has a 12-year life and no salvage value. The expected annual income for each year from this equipment follows. 10 points $ 105,000 Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation Equipment Selling, general, and administrative expenses Income 56,000 14,000 10,500 $ 24,500 eBook do (a) Compute the annual net cash flow. (b) Compute the payback period. (c) Compute the accounting rate of return for this equipment. Hint Print Complete this question by entering your answers in the tabs below. References Required A Required B Required c Compute the payback period. Payback Period Denominator: Numerator: 1 Payback period 5 B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $168,000 and has a 12-year life and no salvage value. The expected annual income for each year from this equipment follows. 10 points $ 105,000 Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation Equipment Selling, general, and administrative expenses Income 56,000 14,000 10,500 $ 24, 500 eBook (a) Compute the annual net cash flow. (b) Compute the payback period. (c) Compute the accounting rate of return for this equipment. Hint Print Complete this question by entering your answers in the tabs below. References Required A Required B Required C Compute the accounting rate of return for this equipment. Accounting Rate of Return Denominator: Numerator: = Accounting rate of return

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