ignore income taxes in this problem northstate college has a telephone system th 381940

(Ignore income taxes in this problem.) Northstate College has a telephone system that is in poor condition. The system can be either overhauled or replaced with a new system. The following data have been gathered concerning these two alternatives: Present System Proposed New System Purchase cost when new………………………………………….. $100,000 $150,000 Accumulated depreciation……………………………………….. 90,000 Overhaul cost needed now………………………………………. 80,000 Annual cash operating costs…………………………………….. 30,000 20,000 Salvage value now………………………………………………….. 10,000 Salvage value in 8 years…………………………………………… 2,000 15,000 Working capital required…………………………………………. 50,000 Northstate College uses a 12% discount rate and the total cost approach to capital budgeting analysis. Both alternatives are expected to have a useful life of eight years. The net present value of the overhaul alternative is?