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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 $382.400 with a 6-year life and no salvage value. It will be depreciated on a straight line basis. The company expects to sell 152.960 units of the equipment's product each year. The expected annual income related to this equipment follows Sales $ 239,000 Costs Materials, labor, and overhead (except depreciation on new equipment) 14,000 Depreciation on new equipment 63,733 Selling and administrative expenses 23,900 Total costs and expenses 171.633 Pretax income 67,367 Income taxes (30) 20,210 Net Income 347,157 If at least on 9% return on this investment must be earned, compute the net present value of this investment. (PV of $1. FV of S1 PVA of $1. and EVA of $1) (Use appropriate factor(s) from the tables provided.) Chart Values are Based on: Select Chart Amount X PV Factor Present Value Net procent value

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