Question $3(1$ point$)$

Zebra Technologies is considering some new equipment. The equipment's price is $$280,000,$ and it would cost another $$52,500$ to modify it for special use. The equipment depreciates straight line to $0$ over its $4-$year economic life, but will be sold after $3$ years for $$90,000.$ The new equipment will have no effect on revenues, but it is expected to save the firm $$144,000$ per year in before$-$tax operating costs. Zebra's marginal tax rate is $40\%,$ and the managers estimate its cost of capital to be $8\%.$ What is the project's NPV$?$

$$61,279$

$$55,708$

$-$$$49,623$

$$49,623$

$$45,112$