B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $382,400 and has a 6-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.) $ 239,000 Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Equipment Selling, general, and administrative expenses Income 84,000 63,733 23,900 $ 67,367 (a) Compute the net present value of this investment. (b) Should the investment be accepted or rejected on the basis of net present value? 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.) Chart Values are Based on: n = 6 i = 8 % Select Chart Amount PV Factor Present Value Present Value of 1 0.6302= $ Present value of cash inflows Initial investment Net present value 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? B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $432,000 and has a 12-year life and no salvage value. The expected annual income for each year from this equipment follows. $ 270,000 Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Equipment Selling, general, and administrative expenses Income 144,000 36,000 27,000 $ 63,000 (a) Compute the annual net cash flow. (b) Compute the payback period. (c) Compute the accounting rate of return for this equipment. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the annual net cash flow. Annual Net Cash Flow Income 36,000 DepreciationEquipment Net cash flow $ 80,100 Required A Required B Required C Compute the accounting rate of return for this equipment. Numerator: 1 Accounting Rate of Return Denominator: Average investment $ 216,000 Annual income / = Accounting rate of return 29.17% $ 63,000 / =