The answer is not 43.

Oregon Forest Products will acquire new equipment that falls under the five-year MACRS category. The cost is $420,000. If the equipment is purchased, the following earnings before depreciation and taxes will be generated for the next six years. Use Table 12- 12. Earnings before Depreciation $135,000 182,000 125,000 68,000 69,000 Year 6 39,000 Year 1 Year 2 Year 3 Year 4 Year 5 The firm is in a 25 percent tax bracket and has a 12 percent cost of capital. a. Calculate the net present value. (A negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole dollar amount.) Net present value $ 43.00