Company 123 is contemplating a new mechanized welding system to replace its current manual system. It costs $600,000 to get the new system. The cost will be depreciated at a 30 percent CCA rate. Its expected life is four years. The system would actually be worth $100,000 at the end of four years. The new system could save the company $180,000 per year pretax in labour costs. The tax rate of the company is 44 percent. The required return is 15 percent.

Considering the above information, the company

A. Should buy the new welding system because its net present value (NPV) is positive.

B. Should not buy the new welding system because its net present value (NPV) is negative.

C. Should buy the new welding system because its net present value (NPV) is greater than $180,293.

D. Should not buy the new welding system because its net present value (NPV) is zero. E. None of the above.