Borden Books is interested in purchasing a computer system to use for the next 10 years. Currently, Borden is considering two mutually exclusive systems, System S and System L. System S has an up-front cost of $3 million at t = 0 and will produce positive cash flows of $2.5 million per year for two years (at t = 1 and 2). This system can be repeated forever. In other words, every two years the company can repurchase the system under exactly the same terms. System L has an up-front cost of $5 million at t = 0 and will produce positive cash flows of $2 million per year for five years (at t = 1, 2, 3, 4, and 5). This system can be replaced at a cost of $4 million at t = 5, after which time it will produce positive cash flows of $1.5 million per year for the subsequent five years (at t = 6, 7, 8, 9, and 10). Borden's CFO has determined that the company's WACC is 12%. Over a 10-year extended basis, which system is the better system and what is its NPV? a. System S; $6.13 million O b. System S; $4.10 million c. System L; $2.21 million O d. System L; $4.41 million e. System L; $3.01 million