Sommer Corporation is deciding whether to automate one phase of its production process. The equipment has a sixminus

year life and will cost$410,000. Projected net cash inflows from the equipment are asfollows:

Year 1

$115,000

Year 2

$100,000

Year 3

$110,000

Year 4

$100,000

Year 5

$95,000

Year 6

$90,000

SommerCorporation's hurdle rate is12%. Assume the residual value is zero.

Which one of the following amounts is the net present value of the Sommer Corporationequipment?

A.

$13,749

B.

$102,679

C.

$200,000

D.

$207,719