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Exercise $24-6($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 $$264,000$ 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

Expenses

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

Depreciation$-$Equipment

Selling, general, and administrative expenses

Income

$\backslash$table$[[$$$165,000$