Wooltech Industries has been offered a contract to produce blankets for a major retailer that will yield profits of $$50,000$ for each of the next three years. They will have to purchase a knitting machine at a cost of $$170,000$ which they can sell for $$70,000$ at the end of the three$-$year contract. Should Wooltech sign the contract if their capital cost of borrowing is $9\%$ compounded annually?

NPV $=($$$119\mathrm{.}63)$ No

NPV $=$ $$10,617\mathrm{.}58$ Yes

NPV $=$ $$10,617\mathrm{.}58$ Yes

NPV $=($$$26,564\mathrm{.}73)$ No

NPV $=$ $$3,435\mathrm{.}27$ Yes