Question 1 Your answer is partially correct. Try again. Flounder Industries is considering the purchase of new equipment costing $372,000 to replace existing equipment that will be sold for $55,800. The new equipment is expected to have a $62,000 salvage value at the end of its 1-year life. During the period of its use, the equipment will allow the company to produce and sell an additional 9,300 units annually at a sales price of $6 per unit. Those units will have a variable cost of $4 per unit. The company will also incur an additional $27,900 in annual fixed costs. (a) Calculate the net present value of the proposed equipment purchase. Assume that Flounder uses a 4% discount rate. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to 0 decimal place, e.g. 58,971. Enter negative amount using a negative sign preceding the number e.g. -59,992 or parentheses e.g (59,992).) Net presetle $ (b) Do you recommend that Flounder Industries invest in the new equipment? No# Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO VIDEO VIDEO: SIMILAR EXERCISE Question Attempts: Unlimited