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help asap XYZ is considering buying a new, high efficiency interception system. The new system would be purchased today for $45,700.00. It would be depreciated
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XYZ is considering buying a new, high efficiency interception system. The new system would be purchased today for $45,700.00. 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 $14,900.00. 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 $77,600.00 in 1 year and $66,800.00 in 2 years. If the tax rate is 48.00% and the cost of capital is 8.20%, what is the net present value of the new interception system project? O $13481.18 (plus or minus $50) O $12044.19 (plus or minus $50) O $15151.61 (plus or minus $50) O $16048.24 (plus or minus $50) O None of the above is within $50 of the correctStep by Step Solution
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