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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 $379,200 with a 10-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 151,680 units of the equipment's product each year. The expected annual income related to this equipment follows. $ 237,000 DOK Sales Costs Materials, tabor, and overhead (except depreciation on new equipment) Depreciation on new equipment Selling and administrative expenses Total costs and expenses Pretax income Income taxes (304) Net income 83,000 37,920 23,700 144,620 92,380 27,714 $ 64,666 int rint If at least an 10% 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: rences n Select Chart Amount X PV Factor Present Value Net present value

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