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1. Your company is considering purchasing a new system thatcosts $200,500. This cost will be depreciated straight-line to zeroover the project's five-year life, at the end of which the systemis expected to be sold for $35,000 cash. The system will save thefirm $110,400 per year in pretax operating costs. What is theafter-tax cost saving per year associated with the new system? Thetax rate is 21%.A. $40,100B. $23,184C. $87,216D. $110,4002. Use the information from the previous question, what is theannual depreciation tax shield?A. $31,679B. $40,100C. $42,105D. $8,4213. Use the information from the previous question, what is thenet present value of this project if the discount rate is 12percent?A. $164,110B. $119,200C. $144,249D. $159,9394. Use the information from the previous question, what is theinternal rate of return for this project?A. 38.26 percentB. 39.79 percentC. 40.18 percentD. 36.25 percent