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Equipment Co . is considering an 8 - year transportation plan for the purchase of two alternative transportation systems: System A has an expected life
Equipment Co is considering an year transportation plan for the purchase of two alternative transportation systems:
System A has an expected life of years, will cost $ million, and will produce net cash flows of $ million per year. This will need to be replaced completely in Year to continue operations from Years through another years total
System B has a life of the full years, will cost $ million, and will produce net cash flows of $ million per year.
The company's cost of capital is Based on NPV by how much would the value of the company increase if it accepted the better System?
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