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Problem 10.17 Cullumber Mills management is evaluating two alternative heating systems. Costs and projected energy savings are given in the following table. The firm uses
Problem 10.17 Cullumber Mills management is evaluating two alternative heating systems. Costs and projected energy savings are given in the following table. The firm uses 11.5 percent to discount such project cash flows. Year System 100 System 200 -$1,929,700 -$1,943,100 292,310 899,300 570,230 599,700 707,340 655,600 838,000 397,700 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 O decimal places, e.g. 5,275.) NPV of system 100 is s NPV of system 200 is s Which system should be chosen? Cullumber should choose
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