Net present value: Emporia Mills is evaluatingtwo heating systems. Projects are independent. Costs and projectedenergy savings are given in the following table.
Year | System 100 | System 200 |
---|
0 | $-1,435,000 | $-1,489,671 |
1 | $328,286 | $763,950 |
2 | $604,070 | $619,973 |
3 | $668,921 | $678,783 |
4 | $709,713 | $471,023 |
The company uses 10.73 percent to discount such project cashflows. The NPV of System 100 is $__________.
the NPV of System 200 is $__________, and Emporia should chooseSystem 200 or neither system or System 100 or both systems.