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 $379,200 with a 4-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 151,680 units of the equipment's product each year. The expected annual income related to this equipment follows. $ 237,000 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 (40%) Net income 83,000 94,800 23,700 201,500 35,500 14,200 $ 21,300 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.) X Answer is not complete. Chart Values are Based on: n = 4 i = 9% Amount PV Factor 0.7084 X Present Value Select Chart Present Value of an Annuity of 1 116,100X - IS 82.245 s 82,245 Present value of cash inflows Present value of cash outflows Net present value