Net present value: Champlain Corp. management is investigating two computer systems. The Alpha 8300 costs $3,122,300 and will generate cost savings of $1,345,500 in each of the next five years.

The Beta 2100 system costs $3,750,000 and will produce cost savings of $1,125,000 each year in the first three years and then $2 million each year for the next two years. If the company’s discount rate for similar projects is 14 percent, what is the NPV of each system? Which one should be chosen based on the NPV?