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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 10-year lfe and no salvage value. It will be depreclated on a stralght-line basis. The company expects to sell 152,320 units of the equipment's product each year. The expected annual Income related to this equlpment follows Sales Costs $238,0ee Materials, labor, and overhead (except depreciation on new equipment) 83,00e 38,88e 23,80e 144,88e 93,12e 27,936 $ 65,184 Depreciation on new equipment Selling and administrative expenses Total costs and expenses Pretax income Income taxes (3e%) Net income If at least an 10% return on this Investment must be earned, compute the net present value of this Investment. (PV of $1. EV of $1, PVA of $1, and FVA of $1 (Use approprlate fector(s) from the tables provided.) hart Values are Based on: elect Chart Amount X PV FactorPresent Value Net present value
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