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Sandhill incorporated management is considering investing in two alternative procluction systems. The systems are mutually exclusive. and the cost of the new equipment and the

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Sandhill incorporated management is considering investing in two alternative procluction 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 their production systems What are the payback periods for production systems 1 and 2 ? (Round answers to 2 decimal places, e.y. 15.25.) Paybock period of System 1 is years and Payback period of System 2 is If the systems are mutually exchsive and the firm always chooses projects with the lowest payback period, in which systern should the frminivest? The firm should invest in

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