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QUESTION 3 XYZ is considering buying a new, high efficiency interception system. The new system would be purchased today for $45,200,00. It would be depreciated

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QUESTION 3 XYZ is considering buying a new, high efficiency interception system. The new system would be purchased today for $45,200,00. 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 $13,500.00. 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 $75,300.00 in 1 year and $65,100.00 in 2 years. If the tax rate is 47.10% and the cost of capital is 8.40%, what is the net present value of the new interception system project? O $17115,97 (plus or minus $50)

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