Question: XYZ is considering buying a new, high efficiency interception system. The new system would be purchased today for $47,600.00. It would be depreciated 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 $47,600.00. 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 $13,700.00. 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 $78,400.00 in 1 year and $69,100.00 in 2 years. If the tax rate is 47.50% and the cost of capital is 9.00%, what is the net present value of the new interception system project? O $12395.84 (plus or minus $50) O $7875.59 (plus or minus $50) O $9283.24 (plus or minus $50) O $11591.40 (plus or minus $50) O None of the above is within $50 of the correct

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