Supper Corp. is evaluating new equipment that will cost $300,000. The new equipment will provide the company with annual before-tax savings of $110,000 for the next five years. The company can depreciate the asset at a CCA rate of 30%. The marginal corporate tax rate is 35% and the required rate of return is 10%. Should the company invest in this new equipment? The salvage value at the end of five years is zero.

Supper Corp. is evaluating new equipment that will cost $300,000. The new equipment will provide the company with annual befo re-tax savings of $110,000 forthe next five yea rs. The company can depreciate the asset at a CCA rate of30%. The marginal corporate tax rate is 35% and the required rate of return is 10%. Should the company invest in this new equipment? The salvage value at the end of five years is zero. Select an answer and submit. For keyboard navigation, use the upfdown arrow keys to select an answer. Yes, the company should invest in the new equipment as the NPV is $21,571.59. b Yes, the company should invest in the new equipment as the NPV is $46,211.70. I: Yes, the company should invest in the new equipment as the NPV is $271,041.25. d No, the company should not invest in the new equipment as the NPV is -$2B,958.75