Allen 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 Proposed System New SystemPurchase cost when new $100,000 $150,000Accumulated depreciation $90,000 -Overhaul cost needed now $80,000 -Annual cash operating costs $30,000 $20,000Salvage value now $10,000 -Salvage value in 8 years $2,000 $15,000Working capital required - $50,000Allen College uses a 12% discount rate and the total cost approach to net present value analysis. Both alternatives are expected to have a useful life of eight years. The net present value of the alternative of overhauling the present system is closest to:a. ($232,272)b. ($108,000)c. ($238,232)d. ($228,232)

Can you with personal finance homework1 abbreviation of annual percentage rate which the interest rate is applied annually to a loan or a credit card balance2 abbreviation of annual percentage yield the rate of return earn in the course of one whole year taking compounding into amount expressed as a percentage3 cash and other liquid assets such as demand deposits or treasury bills than individual possesses4 an expense that does not vary from one time period to the next5 to obtain a new loan for something on different terms often involving the pain off of an existing high-interest loan by means of a new lower interest one6 money set aside for future use7 to take money out of an account8 to plan the allocation expenditure or use of money9 the amount of money spent on food clothing and other basic necessities10 the amount of money that is anticipated to be received over a. of time either as payment for work goods or services or as profit on capital