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Problem 10.05 Ivanhoe 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 Ivanhoe 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 10 percent discount rate for production system projects, Year 0 1 2 System 1 -$12,800 12.000 12,000 12.300 System 2 $42,100 31,400 31,400 31,400 Calculate NPV. (Enter negative amounts using negative sign, ..-45.25. Do not round discount factors. Round answers to decimal places, eg. 15.25.) ock NPV of System 1 is and NPV of System 2 is in which system should the firm invest? The firm should invest in

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