If XYZ Inc. purchases $$618,000$ of new equipment, they can lower annual operating costs by $$265,000.$ The equipment will be depreciated straight$-$line to a zero book value over its $3-$year life. At the end of the three years, the equipment will be sold for an estimated $$60,000.$ The equipment will require the company to hold an extra $$23,000$ of inventory over the $3-$year period. What is the NPV if the discount rate is $14$ percent and the tax rate is $21$ percent?

Question $1$ options:

$$6,884\mathrm{.}40$

$$6,884\mathrm{.}40$

$$$$2,646\mathrm{.}00$

$$3,106\mathrm{.}54$

$$$$12,593\mathrm{.}78$

$$$$7,014\mathrm{.}54$