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You need to install a new baggage claim system for your airport. You are presented with two choices: System 1 cost $1.2 million dollars upfront in capital costs and $230,000 dollars every year to operate and maintain; System 2 costs $3.6 million dollars upfront and $50,000 dollars every year to operate and maintain. The life cycle of these systems is 20 years. Which of the two systems would you choose and why?

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Financial Management, Finance

Category:- Financial Management
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