Ch 11 Ex 11-9 A Saved Help Save & Exit Submit Check my work 1 Exercise 11-9 Computing net present value LO P3 10 points B2B Co. is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment is expected to cost $371,200 with a 8-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 148,480 units of the equipment's product each year. The expected annual income related to this equipment follows. eBook $ 232,000 Hint Sales Costs Materials, labor, and overhead (except depreciation on new equipment) Depreciation on new equipment Selling and administrative expenses Total costs and expenses Pretax income Income taxes (30%) Net income 81,000 46,400 23,200 150, 600 81,400 24,420 $ 56, 980 Ask Print If at least an 9% return on this investment must be earned, compute the net present value of this investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) h References Chart Values are Based on: n = 8 i = 9% PV Factor = Select Chart Present Value of an Annuity of 1 Amount X 103,380 x Present Value $ 0 $ = Present value of cash inflows Net present value