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

Sales 234,000 Costs Materials, labor, and overhead (except depreciation on new equipment) Depreciation on new equipment Selling and administrative expenses Total costs and expenses 82,000 31,200 23,400 136,600 97,400 29,220 Pretax income Income taxes (30%) $68,180 Net income lf 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: Select Chart Amount x PV Factor Present Value Net present value