Question: Moving to another question will save this response Question 3 of Question 3 5 points XYZ is considering buying a new sterilization system. The new
Moving to another question will save this response Question 3 of Question 3 5 points XYZ is considering buying a new sterilization system. The new sterilization system would be purchased today for 588,000. It would be deprecated straight line to 50 over 2 years. In 2 years, the sterilization system would be sold for an after tax cash flow of 57,000. Without the sterilization system, costs are expected to be $110,000 in 1 year and $150,000 in 2 years. With the sterilization system, costs are expected to be $76,000 in 1 year and $52,000 in 2 years. If the tax rate is 50% and the cost of capitalis 5.86%, what is the net present value of the new sterilization system project? a. 58,998 (plus or minus $50) b. $12.198 (plus or minus 350) c. 515,321 (plus or minus $50) d. $18.445 (plus or minus 550) e. None of the above is within 550 of the correct
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