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Club Corp is considering buying a new air conditioning system. The new air conditioning system would be purchased today for $ 4 8 , 0

Club Corp is considering buying a new air conditioning system. The new air conditioning system would be purchased today for $48,000. It would be depreciated straight-line to $4,000 over 2 years. In 2 years, the air conditioning system would be sold and the after-tax cash flow from capital spending in year 2 would be $17,000. The air conditioning system is expected to reduce costs by $36,000 in year 1 and by $4,000 in year 2. If the tax rate is 50% and the cost of capital is 12.93%, what is the net present value of the new air conditioning system project?A. $9,044.34B. $5,123.75C. $1,203.16D.-$2,717.43

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