Question: Xez is considering buying a new, high efficency interception system. The new system would be purchased today for 546,500.00. It would be depreciated straight-line to
Xez is considering buying a new, high efficency interception system. The new system would be purchased today for 546,500.00. It would be depreciated straight-line to 50 ovtr 2 years. In 2 years, the symem would be sold for an after tax cash flow of 514,700.00. Without the system, costs are expected to be 5100,000.00 in 1 year and $100,000,00 in 2 years. With the system, costs are expected to be $79,700.00 in 1 year and $67,000,00 in 2 years. If the tax rate is 48.30% and the cost of capital is 830% What is the net present value of the new intercepsion system project? 3134434 (plus or minus $90 ) $14279 of (plus of minus 580) 510213.60 (phas or minus $50 ) 511718.49 (plat or thinus 340 ) None of the above is within 550 of the correct
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