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Elder, Inc. is considering the purchase of a new air-handling system that will have no...

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Accounting

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Elder, Inc. is considering the purchase of a new air-handling system that will have no effect on revenues but will save $50,000 in energy costs each year it is used. The system costs $120,000 and will be depreciated on a straight-line basis to $0 over 4 years. The system can be sold after six years for $25,000. If the Tax Rate is 20% and the opportunity cost of capital is 13%, what is the project's Net Present Value (rounded to the nearest dollar)? Multiple Choice $66,134 $67,355 $72,158 None of the above $69,757

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