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 0 decimal places, e.g. 5,275.) NPV of system 100 is   $  NPV of system 200 is   $  Which system should be chosen? Sheridan should chooseSystem 100, System 200, neither, or both

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Miller 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   System 100   System 200
0   –$1,982,100   –$1,854,200
1   206,910   763,700
2   429,830   589,800
3   743,040   671,900
4   1,046,900   426,300



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 0 decimal places, e.g. 5,275.)


NPV of system 100 is  
NPV of system 200 is  


Which system should be chosen?

Sheridan should choose
System 100, System 200, neither, or both 
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