Why is this wrong?

328 Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $384,000 and has a 12-year life and no salvage value. The expected annual income for each year from this equipment follows. Sales of new product $ 240,000 Expenses Materials, labor, and overhead (except depreciation} 128,000 DepreciationEquipment 32 , 000 Selling, generalIr and administrative expenses 2%,000 Income $ 56,000 {a} Compute the annual net cash flow. {b} Compute the payback period. {c} Compute the accounting rate of return for this equipment. \fCompute the payback period. Payback Period Numerator: Denominator: Initial investment Annual net cash flow Payback period 384,000 71,200 X = 5.39 years