Exercise $26-6($Algo$)$ Payback period, equal cash flows, and accounting rate of return LO P$1,$ P$2$

B$2$B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $$336,000$ 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 $ $210,000$

Expenses

Materials, labor, and overhead $($except depreciation$)112,000$

Depreciation$$Equipment $28,000$

Selling, general, and administrative expenses $21,000$

Income $ $49,000$

$($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

Compute the annual net cash flow.

Complete this question by entering your answers in the tabs below.

Compute the payback period.

Complete this question by entering your answers in the tabs below.

Compute the accounting rate of return for this equipment.