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 $379,200 with a 6-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 151,680 units of the equipment's product each year. The expected annual income related to this equipment follows. Salen Costs Materials, labor, and overhead (except depreciation on new equipment) Depreciation on new equipment Selling and adminintrative expenses Total costs and expenses Pretax income Income taxes (400) Net Income $ 237,000 83,000 63,200 23,700 169,900 67,100 26,840 $40,260 If at least an 10% return on this investment must be eamed, compute the net present value of this investment. (PV of $1. EV of 51. PVA of $1, and FVA of $1 (Use appropriate factor(s) from the tables provided.) Answer is complete but not entirely correct. Chart Values Based on 6 10% Amount Stact Chart Present Value of an Annuity of 1 PV Factor 0.2200 Present Value $ 23,754 $ 103,460 X olo Present value of cash inflows Present value of cash outflows Net present value $ 23.754 (379,200) $(355,446) 3