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Crane 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
Crane 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 0 1 System 100 -$1,680,300 326,710 404,530 625,440 866,100 System 200 - $1,425,900 918,600 521,700 548,600 453,900 2 3 4. What is the NPV of the systems? (Enter negative amounts using negative sign, e.g. -45.25. Do not round discount factors and intermediate calculations. Round final answers to 0 decimal places, e.g. 5,275.) NPV of system 100 is $ NPV of system 200 is $ Which system should be chosen? Crane should choose
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