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B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $377,600
B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $377,600 and has a 6 -year life and no salvage value. B2B Company requires at least an 10% return on this investment. The expected annual income for each year from this equipment follows: (PV of $1. FV of $1. PVA of $1, and FVA of $1) Note: Use appropriate factor(s) from the tables provided. Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Equipment selling, general, and administrative expenses Income $236,000 [83","000],[62","933],[23","600],[$66","467] (a) Compute the net present value of this investment. (b) Should the investment be accepted or rejected on the basis of net
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