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 $377,600 with a 6-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 151,040 units of the equipment's product each year. The expected annual income related to this equipment follows.

Sales 5 236,000Costs Materials, labor, and overhead (except depreciation on new equipment) 83,000Depreciation on new equipment 62,933Selling and administrative expenses 23,600Total costs and expenses 169,533Pretax income 66,467Income taxes (20%) 13,293Net income 3 53,174 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.) Present Value of an Annuity of 1 $ 116,107 a 4.4860 a $ 520,856 Present value of cash in?ows I $ 520,856Present value of cash out?ows I (377,600) Net present value