Wildhorse Incorporated management is considering investing in two alternative production systems. The systems are mutual

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Wildhorse Incorporated Management Is Considering Investing In Two Alternative Production Systems The Systems Are Mutual 1 (15.63 KiB) Viewed 29 times

Wildhorse Incorporated management is considering investing in two alternative production systems. The systems are mutually exclusive, and the cost of the new equipment and the resulting cash flows are shown in the accompanying table. The firm uses a 10 percent discount rate for production system projects Year System 1 $12,000 D 1 2 3 12,000 12,000 12.000 System 2 $46,300 31.500 31.500 31.500 Calculate NPV Enter negative amounts sing negative signa-45.25 Do not und dcount factors Mound wers to 2 decimal p 15.253 NPV of System iss 161646 and NPV of System 2 is in which system should the firm invest? The firm shunild invest in System 2 325434