Question: QUESTION 4 XV2 is considering buying a new, high efficiency interception system. The new system would be purchased today for $46,000. It would be depreciated
QUESTION 4 XV2 is considering buying a new, high efficiency interception system. The new system would be purchased today for $46,000. It would be depreciated straight-line to 50 over 2 years. In 2 years, the system would be sold for an after-tax cash flow of $13,000. Without the system costs are expected to be $100.000 in 1 year and $100.000 in 2 years. with the system costs are expected to be 575.000 in 1 year and 565.000 in 2 years. If the tax rate is 50 and the cost of capitalis 3.3. what is the net present value of the new interception system project? a $11.970 (plus or minus 550) b. 516.103 (plus or minus 550) C 5886 (plus or minus 550) d. 547,843 (plus or minus 550) e. None of the above is within 550 of the correct
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