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2 $ 12 points B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line.

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2 $ 12 points B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $377,600 and has a 6-year life and no salvage value. B2B Company requires at least an 9% return on this investment. The expected annual income for each year from this equipment follows: (PV of $1. Ey of St. PVA of S1, and EVA of 51 (Use appropriate factor(s) from the tables provided) Sales of new product $ 236,000 Expenses Materials, labor, and overhead (except depreciation) 83,60 Depreciation Equipment 62.933 Selling, general, and administrative expenses 23.60 Incone 462 (a) Compute the net present value of this investment. (b) Should the investment be accepted or rejected on the basis of niet present value? 3 22 Complete this question by entering your answers in the tabs below. Required A Required Compute the net present value of this investment. (Round your present value factor to 4 decimals and other first answers to the nearest whole dollar) Annual Net Cash Presend Value of Annuity at 9% Present Value of Net Cash Flows Years 1 through Net present value Required> Complete this question by entering your answers in the tabs below. Required A Required B Should the investment be accepted or rejected on the basis of net present value? Should the investment be accepted or rejected on the basis of net present value?

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