Saved Exercise 24-9 Computing net present value LO P3 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 $372,800 with a 8 year life and no salvage value It will be depreciated on a straight-line basis. The company expects to sell 149120 units of the equipment's product each year. The expected annual income related to this equipment follows $ 233,000 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 (3x) Net Income 82,600 46,600 23 300 151, 900 81,100 24, 330 $ 56,770 at least en 8% return on this investment must be earned compute the net present value of this investment (PVOL 51. FV of S1 PVA of $1. and EVA of $1) (Use appropriate factor(s) from the tables provided.) Chart Values are Based on: n % Amount PV Factor Select Chart Present Value of an Annuity of 1 Present Value $ 0 Present value of cash inflows Present value of cash outlows Net present value Saved Exercise 24-9 Computing net present value LO P3 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 $372,800 with a 8 year life and no salvage value It will be depreciated on a straight-line basis. The company expects to sell 149120 units of the equipment's product each year. The expected annual income related to this equipment follows $ 233,000 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 (3x) Net Income 82,600 46,600 23 300 151, 900 81,100 24, 330 $ 56,770 at least en 8% return on this investment must be earned compute the net present value of this investment (PVOL 51. FV of S1 PVA of $1. and EVA of $1) (Use appropriate factor(s) from the tables provided.) Chart Values are Based on: n % Amount PV Factor Select Chart Present Value of an Annuity of 1 Present Value $ 0 Present value of cash inflows Present value of cash outlows Net present value