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A new engineer at a sand and gravel operation is considering two mutually exclusive alternatives for a small dredging system. The first option from the

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A new engineer at a sand and gravel operation is considering two mutually exclusive alternatives for a small dredging system. The first option from the Diggemup Corporation would cost $122,208, have a salvage value of $14,279, and net $30,502 per year in net annual profits. The second option from the Pushmoore Mudd Group would cost $179,722, have a salvage value of $19,831, and net $34,414 per year in net annual profits. The net profit is listed after operating and maintenance costs. Due to rough service conditions, both systems would be expected to have a service life of only 5 years. The corporate minimum rate of return for expenditures is 15%. Determine the incremental NPV between these two alternatives. Use the standard convention of considering the highest capital project first use the correct sign in your final

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