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

six-year life and will cost $410,000. Projected net cash inflows from the equipment are as follows:

Year 1	$115,000
Year 2	$100,000
Year 3	$110,000
Year 4	$100,000
Year 5	$95,000
Year 6	$90,000

Sommer Corporation's hurdle rate is 12%. Assume the residual value is zero.

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

A.

$13,749

B.

$102,679

C.

$200,000

D.

$207,719