Question: Saved Help Save & Exit Sut B2B Co. is considering the purchase of equipment that would allow the company to add a new product to

 Saved Help Save & Exit Sut B2B Co. is considering the

Saved Help Save & Exit Sut 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 $377600 with a 12-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 151,040 units of the equipment's product each year. The expected annual Income related to this equipment follows $ 236,00 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 (30%) Net income 83, eee 31,467 23, 60e 138,067 97,933 29.380 $ 68,553 If at least an 9% return on this estment must be earned, compute the net present value of this investment (PV of $1. FV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) Chart Values are Based on! n Select Chart Amount X PV Factor Present Value 0

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