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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 8-year transportation plan for the purchase of two alternative transportation systems:
System A has an expected life of 4 years, will cost $30 million, and will produce net cash flows of $10 million per year. This will need to be replaced completely in Year 5 to continue operations from Years 5 through 8(another 4 years total).
System B has a life of the full 8 years, will cost $50 million, and will produce net cash flows of $12 million per year.
The company's cost of capital is 10%. Based on NPV, by how much would the value of the company increase if it accepted the better System?

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