QUESTION 7 XYZ is considering buying a new.high efficiency interception system. The new system would...

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QUESTION 7 XYZ is considering buying a new.high efficiency interception system. The new system would be purchased today for $46,000. It would be depreciated straight-line to S over 2 years. In 2 years, the system would be sold for an after tax cash flow of $22000. Without the system, costs are expected to be $100,000 in 1 year and $100,000 in 2 years. With the system, costs are expected to be $75.000 in 1 year and S65 600 in 2 years in the tax rate is Son and the cost of capital is what is the net present value of the new interception system project? a $25,384 (plus or minus 50) b. 520,496 (plus or minus $50) c. 54,037 (plus or minus 550) d.563,390 (plus or minus 550) e. None of the above is within 550 of the correct

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