XYZ is considering buying a new, high efficiency interception system. The new system would be purchased today for $49,800.00. 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 $14,600.00. 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 $77 800.00 in 1 year and

$64,800.00 in 2 years. If the tax rate is 47.50% and the cost of capital is 8.30%, what is the net present value of the new interception system project?

O $13544.75 (plus or minus $50)

O $14472.23 (plus or minus $50)

O $11686.91 (plus or minus $50)

O $10170.76 (plus or minus $50)

O None of the above is within $50 of the correct answer