QUESTION 9 XYZ 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 $0 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 $75,000 in 1 year and $65.000 in 2 years. If the tax rate is 50% and the cost of capital is 3.8%, what is the net present value of the new interception system project? a. $11,970 (plus or minus $50) b. $16,103 (plus or minus $50) c. $4,037 (plus or minus $50) d. $54,109 (plus or minus $50) e. None of the above is within $50 of the correct answer QUESTION 10 XYZ is evaluating a project that would require the purchase of a piece of equipment for $420,000 today. During year 1, the project is expected to have relevant revenue of $760,000, relevant costs of $210,000, and relevant depreciation of $130,000. XYZ would need to borrow $420,000 today to pay for the equipment and would need to make an interest payment of $30,000 to the bank in 1 year. Relevant net income for the project in year 1 is expected to be $342,000. What is the tax rate expected to be in year 1? a. A rate less than 10.00% or a rate equal to or greater than 30.00% b. A rate equal to or greater than 10.00% but less than 15.00% c. A rate equal to or greater than 15.00% but less than 20.00% d. A rate equal to or greater than 20.00% but less than 25.00% Oe. A rate equal to or greater than 25.00% but less than 30.00% Save All Answe Wick Save and Submit to save and submit. Click Save All Answers to save all answers