Cove Corporation is deciding whether to automate one phase of its production process. The equipment has a six-year life and will cost $320,000. Projected net cash inflows from the equipment are as follows: Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 $100,000 $130,000 $120,000 $150,000 $92,000 $94,000 Cove Corporation's hurdle rate is 12%. Assume the residual value is zero. What is the net present value of the equipment? Present Value of $1 Periods 2 3 10% 0.909 0.826 0.751 0.683 12% 0.893 0.797 0.712 0.636 14% 0.877 0.769 0.675 0.592 16% 0.862 0.743 0.641 0.552 4 0.567 0.507 0.519 0.456 0.476 0.410 5 0.621 6 0.564 Present Value of Annuity of $1 Periods 10% 1 0.909 2 1.736 3 2.487 4 3.170 5 3.791 6 4.355 12% 0.893 1.690 2.402 3.037 3.605 4.111 14% 0.877 1.647 2.322 2.914 3.433 3.889 16% 0.862 1.605 2.246 2.798 3.274 3.685 .... O A. $18,429 OB. $153,572 C. $172,001 OD. $(153,572)