Question: Please the answer is 9151.12.... Please help me get to that answer. uestion 7 XYZ is considering buying a new, high efficiency interception system. The

Please the answer is 9151.12.... Please help me get to that answer.Please the answer is 9151.12.... Please help me get to that answer.

uestion 7 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 X 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? Selected Answer: $13428.21 (plus or minus $50 ) Answers: $10641.91 (plus or minus $50 ) $9151.12 (plus or minus $50 ) $1342821 (plus or minus $50 ) $12536.65 (plus or minus $50 ) None of the above is within $50 of the correct answer 0 out of 10 points Question 8 XYZ is evaluating the Reno projed. The project would require an initial investment of 5149,000 that would be depreciated to 515,400 over 6 years using uestion 7 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 X 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? Selected Answer: $13428.21 (plus or minus $50 ) Answers: $10641.91 (plus or minus $50 ) $9151.12 (plus or minus $50 ) $1342821 (plus or minus $50 ) $12536.65 (plus or minus $50 ) None of the above is within $50 of the correct answer 0 out of 10 points Question 8 XYZ is evaluating the Reno projed. The project would require an initial investment of 5149,000 that would be depreciated to 515,400 over 6 years using

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!