B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $379,200 and has a 10-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	$ 237,000
Expenses
Materials, labor, and overhead (except depreciation)	83,000
DepreciationEquipment	37,920
Selling, general, and administrative expenses	23,700
Income	$ 92,380

(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 = 10 101% Select Chart Amount PV Factor Present Value Present Value of an Annuity of 1 6.14461 = $ 0 Present value of cash inflows Initial investment (379,200) Net present value