exclusive, and the cost of the new equipment and the resulting cash flows are shown in the accompanying table. The firm uses a 7 percent discount rate for Production systems. Year 0 1 2 3 System 1 -$14,600 15,100 15,100 15,100 IRR of system 1 is Which has the higher IRR? System 2 -$42,800 Compute the IRR for both production system 1 and production system 2. (Do not round intermediate calculations. Round answers to 2 decimal places, e.g. 15.25%.) 33,600 NPV of system 1 is $ 33,600 33,600 V has higher IRR. Compute the NPV for both production system 1 and production system 2. (Do not round intermediate calculations. Round answers to 2 decimal places, e.g. 15.25.) Which production system has the higher NPV? % and IRR of system 2 is has higher NPV. %. and NPV of system 2 $

exclusive, and the cost of the new equipment and the resulting cash flows are shown in the accompanying table. The firm uses a 7 percent discount rate for Production systems. Compute the IRR for both production system 1 and production system 2. (Do not round intermediote calculations. Round answers to 2 decimal places, e. 15.25\%) IRR of system 1 is % and IRR of system 2 is \%. Which has the higher IRR? has higher IRR. Compute the NPV for both production system 1 and production system 2. (Do not round intermediate calculations, Round answers to 2 decimal places, eg. 15.25.) NPV of system 1 is $ and NPV of system 2$ Which production system has the higher NPV? has higher NPV