1. F2 Industries is considering the replacement of its old, fully depreciated dozer. Two upgraded used models under consideration. The Komatsu D39-22 with a cost of $190,000 with and an expected remaining life of 6 years. The D39-22 will provide after tax cash flows (labor savings and depreciation) of $52,000 per year. The second dozer is a Case D-9 which costs $360,000 has a remaining life of 6 years and will produce after tax cash flows of $98,300 per year. Because of the current economic conditions surrounding construction dozers are not expected to rise over the life of the project. Assume F2 Industries cost of capital is 14%. What is the Net present value of the Komatsu D39-22 dozer?

   		$52,500
   		$190,000
   		$14,155
   		$17.450