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B2B Co. is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment is expected
B2B 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 $380, 800 with a 6-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 152, 320 units of the equipments product each year. The expected annual income related to this equipment follows. If at least an 8% return on this investment must be earned, compute the net present value. (PV of $1. FV of $1. PVA of S1. and FVA of $1) (Use appropriate factor(s) from the tables provided.) Compute the net present value of this investment
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