You are considering investing in a piece of equipment to implement a cost$-$cutting proposal. The pre$-$tax cost

reduction is expected to equal $$41\mathrm{.}67$ for each of the three years of the project's life. The equipment has an

initial cost of $$125$ and belongs in a $20\%$ CCA class. Assume a $34\%$ tax bracket, a discount rate of $15\%,$ and a

salvage value of zero.

If the equipment is sold to another company at the end of year $3$ for $$20,$ what is the NPV$?($Use the half$-$year

rule when calculating the CCA Tax Shield. L$.$E use $0\mathrm{.}5$ instead of $1\mathrm{.}5)$

a$.-$$$33\mathrm{.}56$

b$.-$$$28\mathrm{.}91$

c$.$ $$0$

d$.$ $$28\mathrm{.}91$

e$.$ $$33\mathrm{.}56$