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 costs $$372,800$ and has a $8-$year life and no salvage value. B$2$B Company requires at least an $9\%$ return on this investment. The expected annual income for each year from this equipment follows: $($PV of $$1,$ FV of $$1,$ PVA of $$1,$ and FVA of $$1)$

Note: Use appropriate factor$($s$)$ from the tables provided.

Sales of new product $ $233,000$

Expenses

Materials, labor, and overhead $($except depreciation$)82,000$

Depreciation$$Equipment $46,600$

Selling, general, and administrative expenses $23,300$

Income $ $81,100$

$($a$)$ Compute the net present value of this investment.

$($b$)$ Should the investment be accepted?

Annual Net Cash Flows x Present Value of Annuity at $9\%=$ Present Value of Net Cash Flows

Years $1$ through $8=$ $$0$

Initial investment $372,800$

Net present value