You are reviewing a proposal to purchase new equipment. The upfront cost of equipment is $200,000. If purchased, annual cash flows would increase by $85,000 for the first 3 years and $75,000 a year for years 4 and 5. At the end of five years, the equipment can be sold for $15,000, increasing the annual cash flow for year five to $90,000. If the company's weighted average cost of capital is 14.5%, calculate the net present value for the proposal Select one: a $84,271 b. $85,309 c. $85,062 d. $84,824 e. $85,785