828 Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $376,000 and has a 6-year life and no salvage value. 82B Company requires at least an 8% return on this investment. The expected annual income for each year from this equipment follows: (PV of 51 EV. of 51 PVA of51, and EVA of 5) (Use appropriate factor(s) from the tables provided.) Dok Sales of new product $ 235,000 Expenses wit Materials, labor, and overhead (except depreciation) Depreciation-Equipment 82,000 62,667 Selling, general, and administrative expenses 23,500 onces Income 546,833 (a) Compute the net present value of this investment. (b) Should the investment be accepted or rejected on the basis of net present value? Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of this investment. (Round your present value factor to 4 decimals and other final answers to the nearest whole dollar) Chart Values are Based on: AN to ni ne VESURER VE OLLEAEU U rejecu ne pas unes preserver Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of this investment. (Round your present value factor to 4 decimals and other final answers to the nearest whole dollar.) Chart Values are Based on: R 6 IM 8% Select Chart Amount x PV Factor Present Value = $ Required A Required B > Net present value D (a) Compute the net present value of this investment. (b) Should the investment be accepted or rejected on the basis of net present value? 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? aw (0) Compute the net present value of this investment. (b) Should the investment be accepted or rejected on the basis of net present value? Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of this investment. (Round your present value factor to 4 decimals and other final answers to the nearest whole dollar) Chart Values are Based on: AH 6 EM Select Chart PV Factor- Present Value 0 Net present value Amount Required > HITE ook ra References MERG, OVER HEA0 (except depreciation) 82,000 Depreciation Equipment Selling, general, and administrative expenses Incomu 62,667 23,500 $ 66,833 (a) Compute the net present value of this investment. (b) Should the investment be accepted or rejected on the basis of net present value? Complete this question by entering your answers in the tabs below. 4 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 not present value?
