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 4-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 equipments product each year. The expected annual income related to this equipment follows.

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.)

$ 239,000 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 (20%) Net income 84,000 95, 600 23,900 203,500 35,500 7,100 $ 28, 400 Chart Values are Based on: n = Select Chart Amount X PV Factor = Present Value Net present value