B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $374,400 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) (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 (a) Compute the net present value of this investment. $ 234,000 82,000 62,400 23,400 $ 66,200 (b) Should the investment be accepted or rejected on the basis of net present value? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of this investment. (Round your present value factor to 4 decimals and other final answers to the nearest whole dollar.) Annual Net Cash Flows x Present Value of Annuity at 10% Present Value of Net Cash Flows Years 1 through 6 $ 128,600 4.0000 = $ 514,400 Initial investment 374,000 Net present value $ 161,192 < Required A Required B >