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 $376,000 with a 4 year life and no salvage value. It will be depreciated on a straight line basis. The company expects to sell 150,400 units of the equipment's product each year. The expected annual income related to this equipment follows. $ 235,000 Sales Costs Materials, labor, and overhead (except depreciation on new equipment) Depreciation of new equipment Selling and administrative expenses Total costs and expenses Pretax income Income taxes (40%) Net Income 12,000 94,000 23 500 199,500 25,500 16.200 $21,300 If at least an 9% return on this investment must be earned, compute the net present value of this investment Prof $1. FV of $1. PVA S1, and EVALS1) (Use appropriate factor(s) from the tables provided.) If at least an 9% return on this investment must be earned, compute the net present value of this investment (PV of $1. FV of $1. $1. and FVA of $1) (Use appropriate factor(s) from the tables provided.) Chart Values are Based on n % Amount PV Factor Present Value Select Chart 0 Net present value