Question: Blossom Corp. management is investigating two computer systems. The Alpha 8300 costs $2,827,325 and will generate cost savings of $1,363,225 in each of the next
Blossom Corp. management is investigating two computer systems. The Alpha 8300 costs $2,827,325 and will generate cost savings of $1,363,225 in each of the next five years. The Beta 2100 system costs $2.972.500 and will produce cost savings of $1,059.750 in the first three years and then $2 million for the next two years. The company's discount rate for similar projects is 14 percent. What is the NPV of each system? (Enter negative amounts using negative sign, eg- -45.25. Do not round discount factors. Round other intermediate calculations and final answer to 0 decimal places, e.. 1.525. NPV of Alphasystem NPV of Beta system
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