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Problem 10.05 Crane Incorporated management is considering investing in two alternative production systems. The systems are mutually exclusive, and the cost of the new equipment

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Problem 10.05 Crane Incorporated management is considering investing in two alternative production systems. The systems are mutually 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 system projects. Year 0 Nm System 1 -$15,300 15,300 15,300 15,300 System 2 -$43,700 31,700 31,700 31,700 Calculate NPV. (Enter negative amounts using negative sign, e.g. -45.25. Do not round discount factors, Round answers to 2 decimal places, e.g. 15.25.) NPV of System 1 is $ and NPV of System 2 is $ In which system should the firm invest? The firm should invest in Click if you would like to Show Work for this question: Open Show Work

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