Ch 24 Homework i Saved 8 B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $372,800 and has a 4-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 EVA of $1) (Use appropriate 7.69 factor(s) from the tables provided.) points Sales of new product $ 233,000 Expenses Materials, labor, and overhead (except depreciation) 82 , 000 Depreciation-Equipment 93 , 200 Selling, general, and administrative expenses 23 , 300 eBook Income $ 34, 500 (a) Compute the net present value of this investment. Hint (b) Should the investment be accepted or rejected on the basis of net present value? Print Complete this question by entering your answers in the tabs below. Required A Required B References 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 = % Select Chart Amount x PV Factor Present Value = $ Net present value Ch 24 Homework 0 Saved 9 7.69 points eBook Refe re nces 823 Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $360,000 and has a 12-year life and no salvage value. 323 Company requires at least an 8% 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 $ 225,000 Expenses Materials, labor, and overhead (except depreciation) 120,000 DepreciationEquipment 30 , 000 Selling, general, and administrative expenses 38.250 Income $ 361750 (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 lav entering your answers in the tabs below. l RequiredA l RequiredB Compute the net present value of this investment. (Round your present value factor to 4 decimals and other nal answers to the nearest whole dollar.) Net present value Required B > Ch 24 Homework 0 Saved 1O Refe re nces GTO Incorporated is considering an investment costing $246,880 that results in net cash flows of $40,000 annually for 15 years. (PV of $1, FV of $1, PVA of $1, and PVA of $1) (Use appropriate factorts) from the tables provided.) (a) What is the internal rate of return of this investment? (b) The hurdle rate is 14.5%. Should the company invest in this project on the basis of internal rate of return? a. Internal rate of return _ 13. Should the company invest in this project on the basis of internal rate of return? _