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6 B2B Co. is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment is
6 B2B Co. is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment is expected to cost $372,800 with a 10-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 149.320 units of the equipment's product each year. The expected annual income related to this equipment follows. 125 Dot $ 233,000 eBook Sales Costs Materials, labor, and overhead (except depreciation on nest equipment) Depreciation on new equipment Selling and administrative expenses Total costs and expenses Pretax income Income taxes (30%) Net Income 82,00 37,280 23.300 142,58 90,420 27, 126 $ 63,294 Pent If at least an 10% return on this investment must be earned, compute the net present value of this investment. (PV of $1. FV of $1. PVA of $1. and FVA of $1) (Use appropriate factor(s) from the tables provided.) Deferences Chart Values are Based on % Select Chart Amount x PV Factor Present Value Nel present Value
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