You are the CFO of a manufacturing company that is considering an investment in new production equipment, The equipment has a cost of $$5$ million and is expected to generate annual cash flows of $$1\mathrm{.}5$ million for the next five years. The equipment has a salvage value of $$500,000$ at the end of the fifth year. The company's cost of capital is $10\%.$ Which of the following capital budgeting techniques would be most appropriate to evaluate this investment?

Net present value $($NPV$)$

b$.$ Internal rate of return $($IRR$)$

c$.$ Payback period

d$.$ Profitability index

You are the CFO of a manufacturing company that is considering an investment in new production equipment. The equipment has a cost of $$5$ million and is expected to generate annual cash flows of $$1\mathrm{.}5$ million for the next five years. The equipment has a salvage value of $$500,000$ at the end of the fifth year. The company's cost of capital is $10\%.$ What is the NPV of this investment rounded to the nearest thousand? Should the company invest in the equipment?

b$.$ $$1,000,000$; Yes

c$.$ $$1,000,000$; No

d$.($$$1,000,000)$; No