Question: Crane Mills management is evaluating two alternative heating systems. Costs and projected energy savings are given in the following table. The firm uses 11.50 percent

Crane Mills 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: 0,1,2,3,4

System 100: $1,856,700, 216,210, 478,230, 807,440, 754,300

System 200: $1,334,800, 568,400, 579,300, 484,700, 320,300

NPV of system 100 is		$
NPV of system 200 is		$

Which system should be chosen?

Crane should choose

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