Blossom Corp. management is investigating two computer systems. The Alpha 8300 costs $2,624,825 and will generate cost savings of $1,526,225 in each of the next five years. The Beta 2100 system costs $2,965,500 and will produce cost savings of $1,373,750 in the first three years and then $2 million for the next two years. The companys discount rate for similar projects is 14 percent.

What is the NPV of each system?

Which one should be chosen based on the NPV?