b2b co

Exam 4 0| eztomh educationcom hm.tpx B2B Co. is considering the purchase of equipment that would allow the 82B Co is considering the purchase of equipment that would allow the company to add a new product to its ine. The equipment is expected to cost $371,200 with a 5-year life and no salvage value. It will be depreciated on a straight line basis B2BCo. ncludes hat tmusteam at least a 8% return on this investment. The company expects to sell 148,480 units of the equipment's product each year. The expected annual income related to this equipment follows. (PV of $1. EV of $1. PVA of $1, and FVA ot $1) (Use appropriate factor(s) from the tables provided.) Sales Costs $232,000 Materials, labor, and overhead (except depreciation) 81,000 74,240 23,200 Depreciation on new equipment Selling and administrative expenses Total costs and expenses Pretax income 178,440 53,560 10,712 Income taxes (20%) Net income $ 42,848 Compute the net present value of this investment. (Round "PV Factor" to 4 decimal places. Round your intermediate calculations and final answer to the nearest dollar amount.) Chart values are based on: 8% Select chart Amount x Table factor Present Value Present Value of an Annuity of 1 Present value of cash inflows 0 Type here to search