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additiona; 3 B 2 B Company is considering the purchase of equipment that would allow the company to add a new product to its line.
additiona;BB Company is considering the purchase of equipment that would allow the company to add a new product to its
line. The equipment costs $ and has a year life and no salvage value. BB Company requires at least an
return on this investment. The expected annual income for each year from this equipment follows: PV of $ FV
of $ PVA of $ and FVA of $
Note: Use appropriate factors from the tables provided.
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.
Compute the net present value of this investment.
Note: Round your present value factor to decimals and other final answers to the nearest whole dollar.
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