Exercise 24-9 Computing net present value LO P3 828 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 $374,400 with a 8-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 149,760 units of the equipment's product each year. The expected annual income s 234,000 Costs Naterials, labor, and overhead (except depreciation on new equipment) 2,000 46,800 23.400 Depreciation on nev equipnent Selling and adninistrative expenses Total costs and expenses Pretax incone Inoome taxes (30) Net inoone 1,800 57,260 lf at least an 10% return on this investment must be earned, compute the net present value of this investment. (rvorst Post eva of S1, and EVA of $) (Use appropriate factorls) from the tables provided.) Values are Based on PV Factor Select Chart Net present value Next >