Wildhorse Mills management is evaluating two alternative heating systems. Costs and projected energy savings are...
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Wildhorse 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 -$1.709.300 266,810 441.230 731.540 723.700 System 200 -$1,670,600 893,100 579,400 625,600 449,200 2 3 4 What is the NPV of the systems? (Enter negative amounts using negative sign, eg. -45.25. Do not round discount factors and intermediate calculations. Round final answers to decimal places, eg,5,275.) NPV of system 100 is $ NPV of system 2005 $ Which system should be chosen? Wildhorse should choose
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