Question: Question 15 5 points Save Arrower XYZ is considering buying a new sterilization system. The new sterilization system would be purchased today for $18,000. It
Question 15 5 points Save Arrower XYZ is considering buying a new sterilization system. The new sterilization system would be purchased today for $18,000. It would be depreciated straight line to 80 over 2 years. In 2 years, the sterilization system would be sold for an after-tax cash flow of $37,000. Without the station system, costs are expected to be $110,000 in 1 year and $150,000 in 2 years. With the steriluation system, costs are expected to be 376,000 in 1 year and $52,000 in 2 years. W the tax rate is 50% and the cost of capital is 9.861, what is the net present value of the new sterilization system project? a 536,984 (plus or minus 550) b. 527,881 (plus or minus 550) c. 56,327 (plus or minus 550) d. $21,655 (plus or minus 50) e. None of the above is within 550 of the correct
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