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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. 828 Co. is considering
B2B Co. is considering the purchase of equipment that would allow the company to add a new product to its line.
828 Co. is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment expected to cost $382.400 with a 6-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 152.960 units of the equipment's product each year. The expected annual income related to this equipment follows $ 239,e00 Sales Costs 84,000 63,733 Materials, labor, and overhead (except depreciation on neu equipment) Depreciation on new equipment Selling and administrative expenses Total costs and expenses Pretax income Income taxes (30%) Net incone 171,633 67,367 5 47,157 at least an 9% return on this investment must be earned compute the net present value of this investment S1. and EVAot s) (Use appropriate factorte) from the tables provided.) Chart Values are Based on: torPresent Value Amount PV Fac lect Chart lf at least an 9% return on this investment must be earned, compute the net present value of this investment evotsi. Evos S1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) Chart Values are Based on t]x1PVFactor Pl resent Value Select Chart Amount X Net present value Step by Step Solution
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