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 $360,000 with a 12-year life and no salvage value. It will be depreciated on a straight- line basis. The company expects to sell 144,000 units of the equipment's product each year. The expected annual income related to this equipment follows. (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Sales $225,000 Costs Materials, labor, and overhead (except depreciation on new equipment) 120,000 Depreciation on new equipment 30,000 Selling and administrative expenses 22,500 Total costs and expenses 172,500 Pretax income 52,500 Income taxes (30%) 15, 750 Net income $ 36,750 If at least an 8% return on this investment must be earned, compute the net present value of this investment Chart Values are Based on: n. Select Chart Amount PV Factor Present Value Net present value