Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Can you go over my work? I submitted these answer and got some wrong B2B Company is considering the purchase of equipment that would allow
Can you go over my work? I submitted these answer and got some wrong
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 4-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 $i. FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) $ 237,880 Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Equipment Selling, general, and administrative expenses Income 83,080 94, see 23,7ee $ 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? 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: 129,800 3 % Amount X PV Factor Select Chart Present Value of an Annuity of 1 Present Value S 429,911 s 129,800 x 3.3121 = Present value of cash inflows S 429.011 (379.200) Initial investment Net present value S 50.711Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started