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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 10.42 percent

Emporia Mills management is evaluating two alternative heating systems. Costs and projected energy savings are given in the following table. The firm uses 10.42 percent to discount such projectcash flows.

Year. System 100. System 200

0 $-1,547,400 $-1,406,000

1 245,810. 877,000

2 421,630. 565,500

3. 513,340. 458,400

4. 887,700. 342,500

What is the NPV of the systems?(Enter negative amounts using negative sign e.g. -45.25. Do not round discount factors. Round answers to 0 decimal places, e.g. 5,275.)

NPV of system 100 is$

NPV of system 200 is$

Which system should be chosen?

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