PLEASE HELP THE ANSWER IS NEITHER

($115,053) & ($879,853)

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 $382,400 with a 6-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 152,960 units of the equipment's product each year. The expected annual income related to this equipment follows. Sales Costs Materials, labor, and overhead (except depreciation on new equipment) Depreciation on new equipment Selling and administrative expenses Total costs and expenses Pretax income Income taxes (30%) Net income $ 239,000 84,000 63, 733 23,900 171,633 67,367 20,210 $ 47,157 If at least an 9% return on this investment must be earned, compute the net present value of this investment. (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Answer is complete but not entirely correct. Chart Values are based on: % Amount Select Chart Present Value of an Annuity of PV Factor 4.4860 Present Value 497 453 110,890 X 1 $ Present value of cash inflows Present value of cash outflows Net present value >> 497,453 382,400 115,053 X $ 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 $382,400 with a 6-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 152,960 units of the equipment's product each year. The expected annual income related to this equipment follows. $ 239,000 Sales Costs Materials, labor, and overhead (except depreciation on new equipment) Depreciation on new equipment Selling and administrative expenses Total costs and expenses Pretax income Income taxes (30%) Net income 84,000 63,733 23,900 171,633 67,367 20,210 $ 47,157 If at least an 9% return on this investment must be earned, compute the net present value of this investment. (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Answer is complete but not entirely correct. Chart Values are based on: Amount Select Chart Present Value of an Annuity of 1 PV Factor 4.4860 Present Value 497,453 110,890 X = Present value of cash inflows Present value of cash outflows Net present value 497,453 382,400 879,853 $