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 8-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. $ 234,000 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 82,000 46,800 23,400 152,200 81,800 24,540 $ 57,260 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.) Chart Values are Based on: n = 8 91% Amount x 95,880 x Select Chart PV Factor = 5.5438 = Present Value $ 531,540 $ $ Present value of cash inflows Present value of cash outflows 531,540 (374,400) 156,277 Net present value $