Question: XYZ is considering buying a new high efficiency interception system. The new system would be purchased today for $ 4 8 , 4 0 0

XYZ is considering buying a new high efficiency interception system. The new system would be purchased today for $48,400. It would be depreciated straight line to $0 over two years. in two years the system will be sold for an after tax cash flow of $14,700 without the system costs are expected to be $100,000 in one year and $100,000 in 2 years with the system costs are expected to be $79,600 in one year and $64,600 in two years. The tax rate is 45% and the cost of capital is 8.7% what is the net present value of the new interception system project?10076.1211765.9514020.6914.966.41None

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