Genetics Engineering is considering the purchase of some new equipment that will cost $100,000 installed. The equipment will produce product that must be FDA approved and this will require at least two years. You and you 2, the company will have net cash outflow of $95.000 and 350,000. Year 3 to 5, the company will generate cu inflows of $200,000, 5240,000, and $330,000. At the end of 5 years the equipment and the product will be obale. If the firm's costs of capital is 15%, should they invest in the new equipment? No, NPV --$1,256 Yes, NPV-52,072 Yes, NPV - $12,376 No, NPV-$12,170 Page 4 of 12 Previous Page Next Page