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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 $382,400

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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 $382,400 and has a 4-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 S1, and EVA of S1) (Use appropriate factor(s) from the tables provided.) Sales of new product $ 239,000 Expenses Materials, labor, and overhead (except depreciation) 84,000 Depreciation Equipment 95,600 selling, general, and administrative expenses Income 23,900 5 35,500 (a) Compute the net present value of this investment. (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) Chart Values are Based on: 10 % Amount Select Chart Present Value of an Annuity of 1 X PV Factor 5.8301 Present Valuo 764,326 131,100 x $ $ Present value of cash inflows Initial investment Net present value 764,326 382,400 381,926 $ Required Required B

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