Allen College has a telephone system that is in poor condition. The system can be either overhauled or replaced with a new system. The following data have been gathered concerning these two alternatives:

	Present System	Proposed New System
Purchase cost when new	$100,000	$150,000
Accumulated depreciation	$90,000	-
Overhaul cost needed now	$80,000	-
Annual cash operating costs	$30,000	$20,000
Salvage value now	$10,000	-
Salvage value in 8 years	$2,000	$15,000
Working capital required	-	$50,000

Allen College uses a 12% discount rate and the total cost approach to net present value analysis. Both alternatives are expected to have a useful life of eight years. The net present value of the alternative of overhauling the present system is closest to:

($232,272)

($108,000)

($238,232)

($228,232)