6. Thoma Pharmaceutical Company may buy DNA testing equipment cesting S60,000. This equipment is expected to reduce labor costs of clinical statl' by $20,000 annually. The equipment has a useful life of five years but ialls in the three-year property class for cost recovery (depreciation) purposes. No salvage value is expected at the end. The corporate tax rate for Thoms is 38 percent (combined federal and state), and its required rate of return is 15 percent. (If prfits after taxes on the project are negative in any year, the firm will offset the loss against other firm income for that year.) On the basis of this informa- tion, what is the net present value of the project? Is it acceptable