Your firm is considering the purchase of a new piece of equipment for $$45,000.$ The equipment will be straight$-$line depreciated over four years. The salvage value $($final book value$)$ is $10\%$ of the purchase price. The equipment will increase the earnings before interest, tax, and depreciation by $$15,000$ for each of the $4$ years the equipment is used. The tax rate is $35\%$ and the required rate of return is $10\%.$ What is the NPV and should the equipment be purchased?

Answer choices:

a$.$ The NPV is $-11020\mathrm{.}25.$ No$,$ the equipment should not be purchased.

b$.$ The NPV is $212\mathrm{.}95.$ Yes, the equipment should be purchased.

c$.$ The NPV is $-862\mathrm{.}79.$ No$,$ the equipment should not be purchased.