Net present value: Emporia Mills is evaluating two heating systems. Projects are independent. Costs and projected energy...

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Finance

Net present value: Emporia Mills is evaluatingtwo heating systems. Projects are independent. Costs and projectedenergy savings are given in the following table.

YearSystem 100System 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.

Answer & Explanation Solved by verified expert
4.0 Ratings (491 Votes)
Solution The NPV of System 100 is 31892729 318927 when rounded off to the nearest    See Answer
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