Westland College Has a Telephone System That Is in Poor

Westland College has a telephone system that is in poor condition. The system either can be overhauled or replaced with a new system. The following data have been gathered concerning these two alternatives:
$\begin{array}{|l|r|r|}\hline \text { Purchase Cost New } & \begin{array}{r}\text { Present } \\\text { System }\end{array} & \begin{array}{r}\text { Proposed New } \\\text { System }\end{array} \\\hline \text { Accumulated Depreciation } & \$ 250,000 & \$ 300,000 \\\hline \text { Overhaul costs needed now } & \$ 240,000 & \\\hline \text { Annual Cash operating costs } & \$ 230,000 & \\\hline \text { Salvage value now } & \$ 180,000 & \$ 170,000 \\\hline \text { Salvage value at the end of eight years } & \$ 160,000 & \$ 165,000 \\\hline \text { Working capital required } & \$ 152,000 & \$ 200,000 \\\hline\end{array}$
Westland College uses a $10 \%$ discount rate and the total - cost approach to capital budgeting analysis. Both alternatives are expected to have a useful life of eight years. (Ignore income taxes in this problem.)
- What is the net present value of the alternative of purchasing the new system? (Do not round your intermediate calculations and round your final answer to the nearest whole number.)

A) ($1,236,495) .
B) ($1,169,963) .
C) ($1,076,662) .
D) ($969,895) .