Wildhorse Mills management is evaluating two alternative heating systems. Costs and projected energy savings are...

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Finance

Wildhorse 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 System 100 System 200
0 $1,709,300 $1,670,600
1 266,810 893,100
2 441,230 579,400
3 731,540 625,600
4 723,700 449,200

What is the NPV of the systems?

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