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Problem 9.25 Bandar 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 9.25 Bandar 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. If the firm uses a 10 percent discount rate for production systems projects, Year System 1 System -514,050 -344230 1 14.277 30.860 14.279 30,860 14,277 30,560 Compute the TR for both production system and production system 2. (Do not round intermediate calculations. Round answers to 2 decimal places,... 15.25.) and IRR of systems which has the higher IRRY has higher Compute the NPV for both production system 1 and production system 2. (Do not reund intermediate calculations. Round answers to 2 decimal aces, ... 15.25 or 15.25.) and NPV of system 25 NPV of system is Which production system has the higher NV? has higher

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