Elder, Inc. is considering the purchase of a new air-handling system that will have no effect on revenues but will save $50,000 in energy costs each year it is used. The system costs $120,000 and will be depreciated on a straight-line basis to $0 over 4 years. The system can be sold after six years for $25,000. If the Tax Rate is 20% and the opportunity cost of capital is 13%, what is the projects Net Present Value (rounded to the nearest dollar)?

Multiple Choice

• $66,134

• None of the above

• $69,757

• $72,158

• $67,355