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Exercise 24-9 Computing net present value LO P3 B2B Co. is considering the purchase of equipment that would allow the company to add a new

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Exercise 24-9 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 $374,400 with a 4-year life and no salvage value. It will be deprecated on a straight-line basis. The company expects to sell 149760 units of the equipment's product each year. The expected annual income related to this equipment follows. 2,000 Sales Costs Materials, labor, and overhead (except depreciation on her equipment) Depreciation on new equipment Selling and adeinistrative expenses Total costs and expenses Pretax income Income taxes (305) Net Income 82,000 93.500 2400 199,000 39,000 10,00 $4,500 If at least an 10% return on this investment must be earned, compute the net present value of this investment (EVS), EVL 1. PVA LS1 and EVA S1 (Use appropriate factor(s) from the tables provided.) Chat Values are based on Select Chart Amount PV Factor Print Value Nos presentado

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