Question: YZ is considering buying a new, high efficiency interception system. The new system would be purchased today for $ 4 5 1 0 0 .
YZ is considering buying a new, high efficiency interception system. The new system would be purchased today for $ It would be depreciated straightline to $ over years. In years, the system would be sold for an aftertax cash flow of $ Without the system, costs are expected to be $ in year and $ in years. With the system, costs are expected to be $ in year and $ in years. If the tax rate is and the cost of capital is what is the net present value of the new interception system project?
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