76. Ecogen is considering the purchase of some new equipment that will cost $340,000 installed. The equipment will produce a product that must be FDA approved and this will require at least a year. Net cash flow in Year 1 will be a negative $110,000 but is expected to be a positive $50,000 in Year 2. Net cash flows will be $150,000, $240,000, and $330,000 in the next 3 years. At the end of 5 years the equipment and the product will be obsolete. If the firm's marginal tax rate is 40% and their costs of capital is 15%, should they invest in the new equipment? a. Yes, NPV = $2,090 b. Yes, NPV = $12,390 c. No, NPV = -$63,210 d. No, NPV = -$12,210 88. In comparing the techniques of net present value and internal rate of return: 1. The NPV and IRR techniques will generate the same accept-reject decision provided the projects have conventional cash flows. II. The differences between the underlying assumptions of NPV and IRR can cause them to rank projects differently. a. Only statement I is correct. b. Only statement II is correct. c. Both statements I and II are correct. d. Neither statement I nor II is correct