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 $377,600 with a 6-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 151,040 units of the equipment's product each year. The expected annual income related to this equipment follows. S 236,000 Sales Costs Materials, 1labor, and overhead (except depreciation Depreciation on new equipment Selling and administrative expenses Total costs and expenses Pretax income Income taxes (20 % ) on new equipment) 83,000 62,933 23,600 169,533 66,467 13,293 Net income 53,174 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.) Chart Values are Based on: n = X PV Factor Present Value Select Chart Amount Net present value