XYZ is considering buying a new, high efficiency interception system. The new system would be purchased today for $49,80

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answerhappygod
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XYZ is considering buying a new, high efficiency interception system. The new system would be purchased today for $49,80

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XYZ is considering buying a new, high efficiency interception
system. The new system would be purchased today for $49,800.00. It
would be depreciated straight-line to $0 over 2 years. In 2 years,
the system
would be sold for an after-tax cash flow of $14,600.00. Without
the system, costs are expected to be $100,000.00 in 1 year and
$100,000.00 in 2 years. With the system, costs are expected to be
$77,800.00 in
1 year and $64,800.00 in 2 years. If the tax rate is 47.50% and
the cost of capital is 8.30%, what is the net present value of the
new interception system project?
O $13544.75 (plus or minus $50)
O $14472.23 (plus or minus $50)
O $11686.91 (plus or minus $50)
O $10170.76 (plus or minus $50)
O None of the above is within $50 of the correct answer
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