- Current Attempt In Progress Sunland Incorporated Management Is Considering Investing In Two Alternative Production Syste 1 (41.3 KiB) Viewed 36 times
Current Attempt in Progress Sunland Incorporated management is considering investing in two alternative production syste
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Current Attempt in Progress Sunland Incorporated management is considering investing in two alternative production syste
Current Attempt in Progress Sunland 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 8 percent discount rate for production system projects. Year System 1 -$13,900 0 1 2 3 13,900 13,900 13,900 NPV of System 1 is $ System 2 -$45,200 32,100 32,100 Calculate NPV. (Enter negative amounts using negative sign, e.g. -45.25. Do not round discount factors. Round answers to 2 decimal places, e.g. 15.25.) The firm should invest in 32,100 In which system should the firm invest? and NPV of System 2 is $