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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

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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 $408,000 and has a 12-year life and no salvage value. The expected annual income for each year from this equipment follows. Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Equipment Selling, general, and administrative expenses Income (a) Compute the annual net cash flow. $ 255,000 136,000 34,000 25,500 $ 59,500

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