Propulsion Labs will acquire new equipment that falls under the five-year MACRS category. The cost is $200,000. If the equipment is purchased, the following earnings before depreciation and taxes will be generated for the next six years:

Year 1 .................$75,000

Year 2 .................. 70,000

Year 3 .................. 55,000

Year 4 .................. 35,000

Year 5 .................. 25,000

Year 6 .................. 21,000

The firm is in a 30 percent tax bracket and has a 14 percent cost of capital. Should Propulsion Labs purchase the equipment? Use the net present value method.