Question $9(1$ point$)$

It is after January $1,2024.$ A seven$-$year project will provide before$-$tax cash inflows of $$150,000$ every year for seven years. The project involves purchasing a piece of computer equipment with a cost of $$925,000.$ The computer equipment will have a salvage value of $$100,000$ after seven years. The company's cost of capital for this project is $8\%$ and its tax rate is $30\%.$ The computer equipment qualifies for a CCA rate of $55\%$ and full $100\%$ expensing in the year of acquisition as it is a Class $50$ asset. The CCA pool will have a nil balance at the end of seven years. Which of the following conclusions regarding the company's decision to undertake the project and the project's NPV is correct?

a$)$ Reject; NPV of $-$$$378,331$

b$)$ Reject; NPV of $-$$$80,543$

c$)$ Reject; NPV of $-$$$63,038$

d$)$ Accept; NPV of $$153,744$