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Allied Managed Care Company is evaluating two different computer systems for handling provider claims. There are no incremental revenues attached to the projects, so the

Allied Managed Care Company is evaluating two different

computer systems for handling provider claims. There are no

incremental revenues attached to the projects, so the decision will

be made on the basis of the present value of costs. Allied's

corporate cost of capital is

10

percent. Here are the net cash flow

estimates in thousands of dollars:

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