Two flight guidance systems are being evaluated for a backup control tower at a local airport. One systemutilizes conventional radar, and the second uses a global positioning system (GPS). The life of both systems is 6 years, and the MARR is 12% per year. Based on the internal rate of return criterion, which guidance system would you recommend? Show solutions.   RADAR GPS Capital Investment 300,000 450,000 Annual expenses 60,000 30,000 Salvage value 40,000 80,000

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