Answer Happy

B2B Company is considering the purchase of equipment that would allow the company to add a new product to its ne. The equipment costs $144,000 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 $ 90,000 Expenses Materials, labor, and overhead (except depreciation) 48,600 Depreciation Equipment 12.000 Selling general, and administrative expenses 9,000 Income $ 21,000 (a) Compute the annual net cash flow. (b) Compute the payback period. (c) Compute the accounting rate of return for this equipment Complete this question by entering your answers in the tabs below. Required A Required B Required Compute the annual net cash flow. Income Cash Flow $ 90.000 Annual Results from Investment Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Equipment Selling, general and administrative expenses ncome 48,000 12,000 9,000 21,000 $ $ 0 et cash flow Required B