Question: Future Semiconductors is evaluating a new etching tool. The equipment costs $1.1m and will generate after-tax cash inflows of $0.4m per year for six years.

Future Semiconductors is evaluating a new etching tool. The equipment costs $1.1m and will generate after-tax cash inflows of $0.4m per year for six years. Assume the firm has a 15% cost of capital. Whats the NPV of the investment?

Group of answer choices

$0.36m

$0.41m

$1.46m

$1.41m

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