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Blossom Incorporated management is considering investing in two alternative production systems. The systems are mutually exclusive,...

Blossom 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 9 percent discount rate for production system projects.

Year System 1 System 2

0

 -$15,900 -$43,400

1

 15,900 31,700

2

 15,900 31,700

3

 15,900 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.)

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jeff jeffy answered 2 years ago
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