1 Question Tables, in cronological order

Exercise 11-9 Computing net present value LO P3 B2B Co. Is consldering the purchase of equipment that would allow the company to add a new product to its line. The equipment is expected to cost $380,800 with a 8-year life and no salvage value. It will be depreclated on a straight-lne basis. The company expects to sell 152,320 units of the equlpment's product each year. The expected annual Income related to thls equlpment follows. Sales Costs 238,ee8 Materials, labor, and overhead (except depreciation on new equipment) 83,000 47,680 23,808 154,488 83,688 16,720 S 66,888 Depreciation on new equipment Selling and administrative expenses Total costs and expenses Pretax income Income taxes (28%) Net income lf at least an 9% return on this Investment must be earned, compute the net present value of ths investment. (PVOfS1. Evof$1, PVAOf $1, and FVA of S1 (Use approprlate factor(s) from the tebles provided.) Chart Values are Based on: 996 t Chart PV Factor Present Value sent Value of an Annuity of 1 Present value of cash inflows Present value of cash outflows Net present value