6 Graded CH10 Assignment Question 19 of 26 / 1 E View Policies Current Attempt in Progress Pharoah 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 ows are shown in the accompanying table. The rm uses a 8 percent discount rate for their production systems. Year System 1 System 2 0 $12200 4542200 1 12.200 31.000 2 12.200 31.000 3 12,200 31000 What are the payback periods for production systems 1 and 2? (Round answers to 2 decimal places. cg. 15.25.) Payback period of System 1 is years and Payback period of System 2 is years. If the systems are mutual lyexclusive and the rm always chooses projects with the lowest payback period, in which system should the rm invest? Thermshouldinvestin v . eTextbook and Media Save for Later Attempts: U of 3 used Using multiple attempts wi ll impact your score 50% score reduction after attempt 2