Question: XYZ Is considering buying a new, high efficiency interception system. The new system would be purchased today for $48,300.00 it would be depreciated straight line
XYZ Is considering buying a new, high efficiency interception system. The new system would be purchased today for $48,300.00 it would be depreciated straight line to $0 over 2 Without the system would be sold for am after cash of 13,600.00. without the system , cost 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 $75,500.00 in 1 year and $67.700.00 in 2 yrs . if the tax rate is 49.60 and the cost of capital is 8.60% whst od the net present value of the new interception system project?
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