Question 3 (15 points) (Capital Budgeting) Data Corp needs to buy new equipment to pursue new business lines in order to increase its value. The company has two options: Expected Life (yrs) Option Initial Expected Main. Costs Investment Rev (per yr) (per yr) 15,000 6,000 3,000 20,000 5,000 2.100 Salvage Value 6,000 13,000 6 Also assume Option B will get a tax rebate of $2,000 in year 4 and $1,500 in year 8. Data Corp has a beta of 1.3, the risk free-rate is 2.5% and the market risk premium is 8%. A. Calculate the IRR and NPV of each option B. Which strategic decision should Data Corp make? Why?