QUESTION 1 Ecogen is considering the purchase of some new equipment that will cost $340,000 installed. The equipment will produce a product that must be FDA approved and this will require at least a year. Net cash flow in Year 1 will be a negative $110,000 but is expected to be a positive $50,000 in year 2, $150,000 in year 3, $240,000 in year 4 and $330,000 in year 5. At the end of 5 years, the equipment and product will be obsolete and have a salvage value of $0. If the firms cost of capital is 15%, should they invest in the new equipment? a. Yes, NPV = $12,390 b. No, NPV = -$63,210 c. Yes, NPV = $2070 d. No, NPV = -$12,210