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 depreciated on a straight-line basis.The company expects to sell 149,120 units of the equipment's product each year. The expected annual income related to this equipment follows. If at least an 8% return on this investment must be eamed, compute the net present value. (PV of $1. FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) equipment is expected to cost $372,800 with a 8-year life and no salvage value. It will be Sales Costs S 233,000 Depreciation on new equipment Selling and administrative expenses Materials, labor, and overhead (except depreciation on new equipment) 82,000 46,600 23,300 Total costs and expenses 151,900 Pretax income Income taxes (20%) 81,100 16,220 Net income $ 64,880