Pool Corp is considering investing in equipment costing $400,000. The equipment has a 5 year life, no salvage value and will provide annual cash savings of $125,000. At the end of year three Pool will need to spend $35,000 to overhaul the machine. If the company's discount rate is 14%, the net present value of the project is closest to (factors from Exhibit 12B-1 and Exhibit 12B-2 for an interest rate of 14% are provided below). Period Present value of $1 Present value of an annuity 0.877 0.877 0.769 1.647 3 0.675 2.322 0.592 2.914 0.519 3.433 a. $ 47,165 1 2 4 5 b. $ 5,375 O c. $112,750 d. $ 52,625