Question: Blossom Corp. management is investigating two computer systems. The Alpha 8300 costs $3,354,125 and will generate cost savings $1,482,725 in each of the next five
Blossom Corp. management is investigating two computer systems. The Alpha 8300 costs $3,354,125 and will generate cost saving $1,482725 in each of the neve five years. The Beta 2100 system coste $3,176,500 and wil produce cost savings of $1.017,750 in th first three vears 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, e.g. -45.25. Do not round discount foctors. Round other intermediate calculations and final answer to 0 decimal places, e.s. 1,525.) NPV of Alpha system S NPV of Betasystem s Which one should be chosen based on the NPV? Blossom should chose the system
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