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XYZ is considering buying a new, high-efficiency interception system. The new system would be purchased today for $46.100.00. It would be depreciated straight-line to $0
XYZ is considering buying a new, high-efficiency interception system. The new system would be purchased today for $46.100.00. 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 $79,800.00 in 1 year and $67,500.00 in 2 years. If the tax rate is 48.40% and the cost of capital is 8.70%, what is the net present value of the new interception system project? - $10641.91 (plus or minus $50 ) -\$9151.12 (plus or minus $50 ) $13428.21 (plus or minus $50 ) $12536.65 (plus or minus $50 ) -None of the above is within $50 of the correct
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