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 $382,400 with a 12-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 equipments product each year. The expected annual income related to this equipment follows.

Sales	$	239,000
Costs
Materials, labor, and overhead (except depreciation on new equipment)		84,000
Depreciation on new equipment		31,867
Selling and administrative expenses		23,900
Total costs and expenses		139,767
Pretax income		99,233
Income taxes (40%)		39,693
Net income	$	59,540

If at least an 9% return on this investment must be earned, compute the net present value of this investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)

7 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 $382,400 with a 12-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. 2 points $ 239,000 Sales Costs Materials, labor, and overhead (except depreciation on new equipment) Depreciation on new equipment Selling and administrative expenses Total costs and expenses Pretax income Income taxes (40%) Net income eBook 84,000 31,867 23,900 139,767 99, 233 39,693 $ 59,540 Hint Print If at least an 9% return on this investment must be earned, compute the net present value of this investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Chart Values are Based on: n = 12 % Amount PV Factor = Present Value Select Chart Present Value of an Annuity of 1 $ 91,407 x = $ 0 Present value of cash inflows Present value of cash outflows 382,400 Net present value