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Emporia Mills management is evaluating two alternative heating systems. Costs and projected energy savings are given in the following table. The firm uses 12.86 percent
Emporia Mills management is evaluating two alternative heating systems. Costs and projected energy savings are given in the following table. The firm uses 12.86 percent to discount such project cash flows. Year System 100 System 200 0 $-1,981,525 $-1,465,208 1 322,314 897,000 2 481,545 565,276 3 717,791 659,694 4 876,663 401,055 NPV of system 100 is $ NPV of system 200 is $ Emporia should choose
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