B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $368,000 and has a 10-year life and no salvage value. B2B Company requires at least an 8% 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	$ 230,000
Expenses
Materials, labor, and overhead (except depreciation)	81,000
DepreciationEquipment	36,800
Selling, general, and administrative expenses	23,000
Income	$ 89,200

(a) Compute the net present value of this investment. (b) Should the investment be accepted or rejected on the basis of net present value?

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.) Chart Values are Based on: n = i II % X PV Factor Select Chart Amount Present Value Net present value Required A Required B > Complete this question by entering your answers in the tabs below. Required a Required B Should the investment be accepted or rejected on the basis of net present value? Should the investment be accepted or rejected on the basis of net present value?