Exercise $24-9$ Computing net present value LO P$3$

$B2BC.$ 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 $$368,000$ with a $6-$year life and no salvage value. It will be depreciated on a straight$-$line basis. The company expects

to sell $147,200$ units of the equipment's product each year. The expected annual income related to this equipment follows.

If at least an $10\%$ 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.$)$Exercise $24-9$ Computing net present value LO P$3$

B$2$B 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 $$368,000$ with a $6-$year life and no salvage value. It will be depreciated on a straight$-$line basis. The company expects to sell $147,200$ units of the equipment$$s product each year. The expected annual income related to this equipment follows.