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Sunland Industries is expanding its product line and its production capacity. The costs and expected cash flows of the two independent projects are given in the following table. The firm uses a discount rate of 17.10 percent for such projects. Year Product Line Expansion 0 1 Production Capacity Expansion -$7,086,600 2,532,300 2,532,300 2,532,300 2,450,200 2,450,200 -$2,619,000 1,203,500 682,500 682,500 682,500 682,500 2 3 4 5 a. What are the NPVs of the two projects? (Enter negative amounts using negative sign, e.g. -45.25. Do not round discount factors. Round other intermediate calculations and final answer to O decimal places, e.g. 1,525.) NPV of product line expansion is $ NPV of production capacity expansion is $ b. Should both projects be accepted? or either? or neither? Explain your reasoning. Sunland should accep both projects neither project only the production capacity expansion only the product line expansion e Textbook and Me Carla Vista Mills management is evaluating two alternative heating systems. Costs and projected energy savings are given in the following table. The firm uses 11.50 percent to discount such project cash flows. Year 0 1 System 100 -$1,718,600 270,810 504,930 800,740 737,300 System 200 -$1,416,700 598,700 523,800 541,300 300,100 2 3 4 What is the NPV of the systems? (Enter negative amounts using negative sign, e.g. -45.25. Do not round discount factors and intermediate calculations. Round final answers to 0 decimal places, e.g. 5,275.) NPV of system 100 is $ NPV of system 200 is $ Which system should be chosen? Carla Vista should choose . Sunland 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 8 percent discount rate for production systems. Year NO System 1 -$12,110 12,299 12,299 12,299 System 2 -$46,246 31,390 31,390 31,390 3 Compute the IRR for both production system 1 and production system 2. (Do not round intermediate calculations. Round answers to 2 decimal places, e.g. 15.25%.) IRR of system 1 is % and IRR of system 2 is %. Which has the higher IRR? A has higher IRR. Compute the NPV for both production system 1 and production system 2. (Do not round intermediate calculations. Round answers to 2 decimal places, e.g. 15.25.) NPV of system 1 is $ and NPV of system 2 $ Which production system has the higher NPV? has higher NPV