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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	$ 235,000
Expenses
Materials, labor, and overhead (except depreciation)	82,000
DepreciationEquipment	47,000
Selling, general, and administrative expenses	23,500
Income	$ 82,500

(a) Compute the net present value of this investment. (b) Should the investment be accepted or rejected on the basis of net present value?