Question
Emporium Ltd is evaluating two heating systems. Costs and projected energy savings are given in the following table. The company uses 14.21 per cent to
Emporium Ltd is evaluating two heating systems. Costs and projected energy savings are given in the following table. The company uses 14.21 per cent to discount such project cash flows.
| Year | System 100 | System 200 |
0 | -$1 881 250 | -$1 657 793 |
1 | $341 277 | $737 025 |
2 | $488 411 | $752 640 |
3 | $678 072 | $651 058 |
4 | $661 238 | $332 586 |
Required:
Which system should be chosen
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Managerial Accounting
Authors: Susan V. Crosson, Belverd E. Needles
8th Edition
9780618777174, 618777180, 618777172, 978-0618777181
