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B 2 B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment
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 $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.
Required B
Compute the net present value of this investment. Round your present value factor to decimals and other final answers to
the nearest whole dollar.
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