Crane Corp. management is investigating two computer systems. The Alpha 8300 costs $3,240,625 and will generate cost savings of $1,051,425 in each of the next five years. The Beta 2100 system costs $3,248,500 and will produce cost savings of $1,301,750 in the first three years and then $2 million for the next two years. The companys 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 factors. Round other intermediate calculations and final answer to 0 decimal places, e.g. 1,525.)

NPV of Alpha system		$ enter a dollar amount rounded to 0 decimal places
NPV of Beta system		$ enter a dollar amount rounded to 0 decimal places

Which one should be chosen based on the NPV?

Crane should chose the select a system:

a. Alpha 8300

b. Beta 2100 system.