Medi-Med is a not for profit medical clinic. They are buying a new piece of equipment. Med-Med's discount rate is 6%.

The net cash flows resulting from the investment in this new piece of equipment would be:

Time 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5

-150,000 30,000 30,000 35,000 40,000 50,000

What is the NPV of this piece of equipment?

A.

3,435.11

B.

153,435.11

C.

35,000

D.

3,420.11

E.

none of these