Slossom 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

:able. The firm uses a $9$ percent discount rate for Production systems.

Compute the IRR for both production system $1$ and production system $2.($Do not round intermediate calculations. Roun:

answers to $2$ decimal places, e$.$g$.15\mathrm{.}25\%.)$

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. Rour

answers to $2$ decimal places, e$.$g$.15\mathrm{.}25.)$

NPV of system $1$ is $

and NPV of system $2$$

Which production system has the higher NPV$?$

has higher NPV$.$