IV. Computing Net Present Value K2B Company 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 $240,000 with a 12-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 96,000 units of the equipments product each year. The expected annual income related to this equipment follows. Sales $150,000 Costs Materials, labor, and overhead (except depreciation).. 80,000 Depreciation on new equipment.. 20,000 Selling and administrative expenses 15,000 Total costs and expenses 115,000 Pretax income. 35,000 Income taxes (30%) 10,500 Net income.. $ 24,500 K2B concludes that the investment must earn at least an 8% return. Compute the net present value of this investment. (Round the net present value to the nearest dollar.)