(Solved): Exercise 26-6 (Algo) Payback period, equal cash flows, and accounting rate of return LO P1, P2 B2B ...

Exercise 26-6 (Algo) Payback period, equal cash flows, and accounting rate of return LO P1, P2 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. (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. Compute the annual net cash flow. Exercise 26-6 (Algo) Payback period, equal cash flows, and accounting rate of return LO P1, P2 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. (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. Compute the payback period. Exercise 26-6 (Algo) Payback period, equal cash flows, and accounting rate of return LO P1, P2 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. (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. Compute the accounting rate of return for this equipment. Required information Use the following information for the Quick Study below. (Algo) [The following information applies to the questions displayed below.] Following is information on an investment in a manufacturing machine. The machine has zero salvage value. The company requires a \( 6 \% \) return from its investments. QS 26-20 (Algo) Net present value with uneven cash flows and salvage value LO P3 Assume that instead of a zero salvage value, as shown above, the machine has a salvage value of \( \$ 32,500 \) at the end of its three-year life. Compute the machine's net present value. (PV of \( \$ 1, F V \) of \( \$ 1, P V A \) of \( \$ 1 \), and \( F V A \) of \( \$ 1 \) ) (Use appropriate factor(s) from the tables provided. Round all present value factors to 4 decimal places. Round present value amounts to the nearest dollar.)