Semiconductor Fab, LLC s is evaluating a new etching tool. The equipment costs $1.0m and will generateafter-tax cash inflows of $0.4m per year for...

Semiconductor Fab, LLC s is evaluating a new etching tool. The equipment costs $1.0m and will generateafter-tax cash inflows of $0.4m per year for six years. Assume the firm has a 15% cost of capital. What’sthe NPV of the investment?

a. $0.51m

b. $0.45m

c. $1.51m

d. $1.69m