Exercise 11-9 Computing net present value LO P3 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 $369,600 with a 8-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 147,840 units of the equipment's product each year. The expected annual income related to this equipment follows. Sales S 231,000 Costs Materials, labor, and overhead (except depreciation on new equipment) Depreciation on new equipnent Selling and administrative expenses Total costs and expenses 81,000 46,200 23,100 150,300 Pretax income 80,700 24,210 Income taxes (30%) Net income $ 56,490 If at least an 8% 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 EVA of $1) (Use appropriate factor(s) from the tables provided.) Chart Values are Based on: es n= i= Select Chart Amount PV Factor Present Value Present Value of an Annuity of 1 102.690 x Present value of cash infiows Present value of cash outflows (369.600) Net present value