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 12-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 related to this equipment follows. If at least an 8% return on this investment must be earned, compute the net present value. (PV of $1, FV of $1, PVA of $1, and FVA of S1) (Use appropriate factor(s) from the tables provided.) 234,000 Sales Costs Materials, labor, and overhead (except depreciation on new equipment) 82,000 31,200 Depreciation on new equipment Selling and administrative expenses 23,400 Total costs and expenses 136,600 Pretax income Income taxes (30%) 97,400 29,220 Net income $ 68,180