(Ignore Income Taxes in This Problem

Multiple Choice

(Ignore income taxes in this problem.) 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:
Allen 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

A) £(238,232) .
B) £(108,000) .
C) £(228,232) .
D) £(232,272) .