XYZ is considering buying a new, high efficiency interception system. The new system would be purchased today for $50,000.00. 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 $14,000.00. 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 $68,600.00 in 2 years. If the tax rate is 46.90% and the cost of capital is 8.70%, what is the net present value of the new interception system project?

		$12412.55 (plus or minus $50)
		$8735.66 (plus or minus $50)
		$13163.88 (plus or minus $50)
		$10028.45 (plus or minus $50)
		None of the above is within $50 of the correct answer