(Ignore income taxes in this problem.) Northstate 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 Northstate College uses a 12% discount rate and the total cost approach to capital budgeting analysis. Both alternatives are expected to have a useful life of eight years. The net present value of the overhaul alternative is