Question: Future Semiconductors is evaluating a new etching tool. The equipment costs $1.0 million and will generate after-tax cash inflows of $0.4 million per year for

Future Semiconductors is evaluating a new etching tool. The equipment costs $1.0 million and will generate after-tax cash inflows of $0.4 million per year for six years. Assume the firm has a 12% cost of capital. Whats the NPV of the investment?

$0.51m

$0.64m

$1.51m

$1.69m

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