Orbital Milling Services is going to replace one of its new 3-D prototyping systems. High use in the prototyping shop means the systems are not expected to last more than 5 years. If MARR is 12%, use an IRR analysis to determine which system should be purchased:

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System K System L Cost $14,000 $20,000 Annual OC $3,000 $1,500 Salvage Value $4,000 $6,000