B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $376,000 and has a 12-year life and no salvage value. B2B Company requires at least an 9% 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 $ 235,000 Expenses Materials, labor, and overhead (except depreciation) 82,000 DepreciationEquipment 31,333 Selling, general, and administrative expenses 23,500 Income $ 98,167 (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.)

	Annual Net Cash Flows	x	Present Value of Annuity at 9%	=	Present Value of Net Cash Flows
Years 1 through 12		x		=
Net present value