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pharoah should choose: system 200, neither system, system 100, or both systems

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x Your answer is incorrect. West Street Automotive is considering adding state safety Inspections to its service offerings. The equipment necessary to perform these inspections will cost $618.000 and will generate cash flows of $216,000 over each of the next five years. If the cost of capital is 18 percent, what is the MIRR on this project? (Round final answer to 1 decimal place, eg, 527.5.) MIRR 48.0 % Pharoah Mills management is evaluating two alternative heating systems. Costs and projected energy savings are given in the following table. The firm uses 11.50 percent to discount such project cash flows. Year NO System 100 -$1.420,300 261,910 427,630 504,740 689.100 System 200 -$1.453,800 670,700 627,500 443,100 304,400 3 4 What is the NPV of the systems? (Enter negative amounts using negative sign. es. -45.25. Do not round discount factors and intermediate calculations. Round final answers to decimal places, es 5,275.) NPV of system 100 is $ NPV of system 200 is $ Which system should be chosen? Pharoah should choose Cullumber 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 7 percent discount rate for production systems. Year 0 1 2 3 System 1 -$12,880 13,030 13.030 13,030 System 2 -$49,081 34,100 34,100 34,100 Compute the IRR for both production system 1 and production system 2. (Do not round intermediate calculations, Round answers to 2 decimal places. e. 15.25%) IRR of system 11s 85.25 % and IRR of system 2 is 48.08 % Which has the higher IRR? System I has higher IRR. Compute the NPV for both production system 1 and production system 2. (Do not round intermediate calculations. Round answers to 2 decimal places, es. 15.25) NPV of system 1 iss and NPV of system 2$ Which production system has the higher NPV? V has higher NPV