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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
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 8-year life and no salvage value. It will be depreciated on a straight-line basis. B2B Co. concludes that it must earn at least a 8% return on this investment. The company expects to sell 151,680 units of the equipments product each year. The expected annual income related to this equipment follows.
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