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 $384,000 with a 8-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 153,600 units of the equipment's product each year. The expected annual income related to this equipment follows.

Sales $ 240,000 Costs Materials, labor, and overhead (except depreciation on new equipment) 84,000 Depreciation on new equipment 48,000 Selling and administrative expenses 24,000 Total costs and expenses 156,000 Pretax income 84,000 Income taxes (40%) 33,600 Net income $ 50,400

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.)

If at least an 9% return on this investment must be earned, compute the net present value of this investment. (PV of $1, EV of $1, PVA $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) Chart Values are Based on: n = 1 = % Select Chart Amount X PV Factor Present Value = Net present value