Question: Emporia 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

Emporia 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. Which system should be chosen?

Svstem 100 S(1,750,000) S275,223 S512.445 S648,997 $875,000 Svstem 200 S(1,735,000) S750,000 S612,500 $550,112 $384,226 Year 4

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