XYZ is considering buying a new, high efficiency interception system. The new system would be purchased today for $46,300.00. 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 $13,300.00. 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 $75,900.00 in 1 year and $68,600.00 in 2 years. If the tax rate is 48.60% and the cost of capital is 8.20%, what is the net present value of the new interception system project?

1)14002.52

2) 10303.56

3) 11497.93

4) 13248.82

5) None of the above