A company is evaluating the following 5 year contract. Cost of equipment $200,000 Working capital $100,000 Recalibration equipment year 3 $50,000 Salvage value year 5 $7,000 Annual net cash inflows $100,000 PV of ordinary annuity for 5 years at 10% = 3.791 PV of $1 at 10% year 3 = .751 PV of $1 at 10% year 5= .621 Working capital requirements will be released in year 5 The Company's discount rate is 10% What is the net present value for this project? A company is evaluating the following 5 year contract. Cost of equipment $200,000 Working capital $100,000 Recalibration equipment year 3 $50,000 Salvage value year 5 $7,000 Annual net cash inflows $100,000 PV of ordinary annuity for 5 years at 10% = 3.791 PV of $1 at 10% year 3 = .751 PV of $1 at 10% year 5= .621 Working capital requirements will be released in year 5 The Company's discount rate is 10% What is the net present value for this project? $45,897 positive net present value $107,997 negative net present value $45,897 negative net present value $107,997 positive net present value