Current Attempt in Progress
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 7 percent
discount rate for production system projects.
Year
System 1
System 2
0
-$13,800
-$43,800
1
13,800
30,900
2
13,800
30,900
3
13,800
30,900
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.)