A manufacturer wants to introduce new factory equipment that requires machinery to be purchased today for $120 million. This new machine will last for five years, and will be depreciated straight-line to a value of zero at the end of year five. The extra savings from the new machine are expected to produce project inflows of $47 million per year, beginning one year from today, for five consecutive years. The machine does carry extra costs such that project outflows will be $9 million per year, beginning one year from today, for five consecutive years. If the firm's tax rate is 30% and the required rate of return is 12%, which comes closest to the NPV of the new equipment project?

a

$1.84 million

b

($1.12) million

c

($3.96) million

d

$8.13 million

e

$4.92 million