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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

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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 to cost $374,400 with a 10-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 149,760 units of the equipment's product each year. The expected annual income related to this equipment follows 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 (301) Not income $ 234,000 82,000 37,440 23,400 142,840 93,260 27,348 $ 63,812 If at least on 10% return on this investment must be earned, compute the net present volue of this investment (ex of $1. EV_of $1. PVA of S1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) Chart Values are based on n % Select Chart Amount PV Factor Present Value o Net present value

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