Al Inc. plans to automate its production process. The new equipment will cost $460,000 and will provide net cash inflows in the form of annual cost savings of $110,000 each year for 6 years. At the end of year 6, Al will spend $50,000 to refurbish the equipment so that it can be used for one more year. The equipment will provide cost savings of $65,000 in year 7 and will have a salvage value of $30,000 at the end of year 7. Al uses a discount rate of 10% to make capital budgeting decisions. What is the net present value of this project?

O $39,585

0 $24,195

O $67,785

O $125,685

None of the above