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 6-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 (20%) Net income 82,000 62,400 23,400 167,800 66,200 13,240 52,960 $ 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: n = i= Select Chart Present Value of an Annuity of 1 6 10% Amount * PV Factor = 4.3553 = Present Value $ Present value of cash inflows Present value of cash outflows Net present value T (374,400)