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82B Co. is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment is expected

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82B 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 $376,000 with a 6-year life and no salvage value. It will be depreciated on a straight line basis. The company expects 10 sell 150,400 units of the equipment's product each year. The expected annual income related to this equipment follows 5.235.000 Sales Costs Materials, Inbor, and overhead (except depreciation on nest equipment) Depreciation on new equipment Selling and administrative expenses Total costs and expenses Pretax income Income taxes (303) Net Income 82.000 62,65% 23,500 168.167 66,33 20,00 $ 46,783 If at least an 9% return on this investment must be eamed compute the net present value of this investment (PVS1.EV of $1. PVA $1, and EVA of 51 (Ure appropriate factoria) from the tables provided.) Answer is not complete. Chart Values are Based on 6 91% Select Chart Amount PV Factor 75361 Proson Value 824026 $ 109,450 X Present value of cash outflows 3 024.626 Net present value 304003

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