Question: Future Semiconductors is evaluating a new etching tool. The equipment costs $1.5 million and will generate after-tax cash inflows of $0.6 million per year for

Future Semiconductors is evaluating a new etching tool. The equipment costs $1.5 million and will generate after-tax cash inflows of $0.6 million per year for six years. Assume the company has a 12% cost of capital. What is the NPV of the investment?

Select one:

a.$1.51 million

b.$0.51 million

c.$1.69 million

d.$0.97 million

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