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B2B Co. is considering the purchase of equipment that would allow the company to add a new product to its inc. 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 inc. The equipment is expected to cost $380,800 with a 10-year life and no salvage value. It will be depreciated on a straight line basis. The company expects to sell 152,320 units of the equipment's product each year. The expected annual income related to this equipment follows $ 235,000 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 (30%) Net income 2,000 38,080 23300 140, 93,120 27,036 565.184 If at least an 9% return on this investment must be earned, compute the net present value of this investment PVOLS1 EVL$1. PVADI SJ, and EVA of S1) (Use appropriate factor(s) from the tables provided.) Chart Values are Based on: n- % Select Chart Amount PV Factor Present Value Not present value

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