The management of Fine Electronics Company is considering whether to purchase equipment that will be attached with the main manufacturing machine. The equipment will cost $6,000 and will increase annual cash flows by $2,200. The project has a lifetime of 6 years and the company's managers expect to earn a return of 20% p.a. on all investment projects. What is its NPV?

Group of answer choices

None of the other answers is correct

$1,316

$1,501

$1,138

$967