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Please show full work if possible, would like to be able tounderstand the problem and solution.Leo company is considering a new venture in office equipment. Itexpects the cost ofacquisition of land and building to be $100,000. Leo companyexpects cash flows to be $40,000the first year and $45,000 for the next 4 years. It willdiscontinue the furniture operation uponthe completions of the 5th year. Assume no salvage value. Thecompany’s WACC is 10%.6. What is Leo company’s NPV and should they accept or rejectthe project? Assume no otherprojects exist and that NPV should be used to make thedecision.A. $75,120; accept projectB. $66,040; accept projectC. $80,230; accept projectD. $(8,090); reject projectE. $(9,324); reject project