Which one should be chosen based on the npv

Reference no: EM13268130

Champlain Corp. is investigating two computer systems. The Alpha 8300 costs $3,159,153 and will generate cost savings of $1,121,703 in each of the next five years. The Beta 2100 system costs $4,291,088 and will produce cost savings of $1,012,773 in the first three years and then $2 million for the next two years. If the company's discount rate for similar projects is 14 percent: What is the NPV for the two systems? (Enter negative amounts using negative sign, e.g. -45.25. Round answers to 2 decimal places, e.g. 15.25.)

NPV of Alpha system?

NPV of Beta system?

Which one should be chosen based on the NPV?

Reference no: EM13268130

Questions Cloud

What was its interest expense : Fraser Corporation has announced that its net income for the year ended June 30, 2011, was $1,353,412. The company had EBITDA of $4,606,006, and its depreciation and amortization expense was equal to $1,200,714.

Compute the cash flow invested in net working capital : Compute the cash flow invested in net working capital at Hillman Corporation during 2011.

Where the branch attaches to the trunk : A 1.1 kg birdfeeder hangs from a horizontal tree branch. The birdfeeder is attached to the branch at a point that is 1.0 m from the trunk. where the branch attaches to the trunk

What is the net cash provided by financing activities : It also repurchased stock in the open market for a total of $47,063. What is the net cash provided by financing activities?

Which one should be chosen based on the npv : What is the NPV for the two systems? (Enter negative amounts using negative sign, e.g. -45.25. Round answers to 2 decimal places, e.g. 15.25.)

How many molecules are in these monster drops : Atmospheric scientists studying clouds in the Marshall Islands have observed what they believe to be the world's largest raindrops, with a radius of 0.52 cm. How many molecules are in these monster drops

State the name of alkyl branch present on the ring : Name the alkyl branch present on the ring of ibuprofen that is across from the acid functional group

Find the maximum efficiency possible of such a heat engine : The surface waters of tropical oceans are at a temperature of 28?C while water at a depth of 1200 m is at 3?C. What is the maximum efficiency possible of such a heat engine

Explain the performance of electrical work : A process involves the performance of electrical work in the amount w' on a system. Show that if the process is carried out

User Account

All Pages