XYZ is considering buying a new, high efficiency interception system. The new system would be purchased today for $47,500.00. 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 $13,900.00. 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 $78,500.00 in 1 year and $69,600.00 in 2 years. If the tax rate is 46.30% and the cost of capital is 8.10%, what is the net present value of the new interception system project?

		$11697.86 (plus or minus $50)
		$12487.86 (plus or minus $50)
		$9922.51 (plus or minus $50)
		$8627.73 (plus or minus $50)
		None of the above is within $50 of the correct answer