Question: Show me the steps to answer this please? no excel pls XYZ is considering buying new, high efficiency interception system. The new system would be
Show me the steps to answer this please? no excel pls
XYZ is considering buying new, high efficiency interception system. The new system would be purchased toady for $47,500.00. 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 $13,900.00. 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 $78,500.00 in 1 year and $69,600.00 in 2 years. If the tax rate 46.30% and the cost of capital is 8.10%, what is the net present value of the new interception system project?
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