B2B Co. is considering the acquisition of equipment that can allow the company in order so as to add a model new product to its line. The instruments is predicted to worth $384,000 with a 12-year life and no salvage value. It’s going to doubtless be depreciated on a straight-line basis.
The company expects to advertise 153,600 fashions of the instruments's product yearly. The anticipated annual income related to this instruments follows. $249,899 Product sales Costs Provides, labor, and overhead (in addition to depreciation on new instruments) Depreciation on new instruments Selling and administrative payments Full costs and payments Pretax income Income taxes (30%) Net income 84,000 32,000 24,099 149,999 100, eee 30,000 $ 70, eee If on the very least an eight% return on this funding must be earned, compute the net present value of this funding. PV of $1. FV of $1. PVA of SL and FVA of 5) (Use acceptable problem(s) from the tables provided.) Chart Values are Based totally on 9 Select Chart Amount * Present Value Het present value. .