Smart Bumpkins Wants to Increase Production by Adding New Equipment

Smart Bumpkins wants to increase production by adding new equipment. The cost of the upgrade is $190,000, and expected cash flows from the new upgrade are expected to be as follows over the next 6 years, and the risk-free rate is 5%. Should the company upgrade? ? $$\begin{array} { | l | l | } \hline \text { Cash Flows } & \text { Certainty Equivalents } \\\hline \$ 45,000 & 0.85 \\\hline \$ 45,000 & 0.80 \\\hline \$ 75,000 & 0.75 \\\hline 110,000 & 0.70 \\\hline \$ 110,000 & 0.60 \\\hline 110,000 & 0.50 \\\hline\end{array}$$

A) Yes, the CNPV is $195,196.06.
B) Yes, the CNPV is $83,775.16.
C) No, the CNPV is -$75,522.84.
D) No, the CNPV is -$42,175.93.