will give thumbs up

Annual cash flow from the new equipment Select one: O a. $1.35 million b. $1.0 million OC. $2.5 million O d. $1.5 million e. $1.6 million For questions 18-21 please use these assumptions: ABC Tool and Die Company wants to invest $5 million in new equipment. No added working capital will be required. The additional revenue expected from this new equipment will be $2.5 million per year for 5 years and the added expenses will be $700,000 a year also for 5 years. The company has a 25% tax rate, the equipment will be depreciated on a straight line basis over 5 years and it will have no salvage value. The cost of capital for ABC is 12%