Question: XYZ is considering buying a new, high efficiency interception system. The new system would be purchased today for $47,900,00. It would be depreclated straight-line to

 XYZ is considering buying a new, high efficiency interception system. The

XYZ is considering buying a new, high efficiency interception system. The new system would be purchased today for $47,900,00. It would be depreclated straight-line to 50 over 2 years. In 2 years, the system would be sold for an after-tax cash flow of $13,800.00. 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 $75,300.00 in 1 year and 565,500.00 in 2 years. If the tax rate is 45.90% and the cost of capital is 8.70%, what is the net present value of the new interception satem project? 51268240 (plus or manus 550 ) $1501531 (plus or minus $50 ) $1511380 (plus or minus $50) $1128592 (plus or minus 550) None of the above is within 550 of the correct

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