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Homework: Time Value of Money and CVP Analysis Assignment i 3 4 points Mc eBook Hint Print Graw Hill Saved B2B Company is considering
Homework: Time Value of Money and CVP Analysis Assignment i 3 4 points Mc eBook Hint Print Graw Hill Saved B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $376,000 and has a 8-year life and no salvage value. B2B Company requires at least an 9% return on this investment. The expected annual income for each year from this equipment follows: (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Equipment Selling, general, and administrative expenses Income (a) Compute the net present value of this investment. $ 235,000 82,000 47,000 23,500 $ 82,500 (b) Should the investment be accepted or rejected on the basis of net present value? Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of this investment. (Round your present value factor to 4 decimals and other final answers to the nearest whole dollar.) Chart Values are Based on: n = i= % Select Chart Amount x PV Factor Present Value $ 0 Net present value < Required A Required B > < Prev 3 of 5 Next > Help Save & Exit Submit Check my work
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