Oregon Forest Products will acquire new equipment that falls under the five$-$year MACRS category. The cost is

$$360,000.$ If the equipment is purchased, the following earnings before depreciation and taxes will be generated for

the next six years. Use Table $12-12.$

The firm is in a $25$ percent tax bracket and has a $12$ percent cost of capital.

a$.$ Calculate the net present value. $($A negative amount should be indicated by a minus sign. Do not round

intermediate calculations and round your answer to the nearest whole dollar amount.$)$

b$.$ Under the net present value method, should Oregon Forest Products purchase the equipment asset?

Yes

No