The NPV of both the systems and the system to be preferred. Net Present Value (NPV): NPV is the technique of capital budgeting. To select the project or not to select the project is based on the NPV of the project. If the project has positive NPV then, if the NPV is negative then reject the project.

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Chapter 6, Problem 12QP

Summary Introduction

To identify: The NPV of both the systems and the system to be preferred.

Net Present Value (NPV):

NPV is the technique of capital budgeting. To select the project or not to select the project is based on the NPV of the project. If the project has positive NPV then, if the NPV is negative then reject the project.

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