Question: Question 4 5 points Save Aswer XYZ is considering buying a new sterilization system. The new sterilization system would be purchased today for $88,000. It

 Question 4 5 points Save Aswer XYZ is considering buying a

Question 4 5 points Save Aswer XYZ is considering buying a new sterilization system. The new sterilization system would be purchased today for $88,000. It would be deprecated straight-line to $0 over 2 years 192 years, the sterilization system would be sold for an after-tax cash flow of $37,000. 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 capital is 7.864 what is the net present value of the new sterilization system project? Ca 540,991 (plus or minus 550) b. $31,720 alus or minus 550) CC 59.187 (plus or minus 550 d. $25,089 (plus or minus 550) e. None of the above is within 550 of the correct

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!