Question: Problem 10.14 Blossom Corp. management is investigating two computer systems. The Alpha 8300 costs $2,761,825 and will generate cost savings of $1,1 each of the
Problem 10.14 Blossom Corp. management is investigating two computer systems. The Alpha 8300 costs $2,761,825 and will generate cost savings of $1,1 each of the next five years. The Beta 2100 system costs $4,207,500 and will produce cost savings of $1,217,750 in the first three years and 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 factors. Round intermediate calculations and final answer to o decimal places, e.g. 1,525.) NPV of Alpha system D NPV of Beta system Which one should be chosen based on the NPV? Blossom should chose the system. Problem 10.14 Blossom Corp. management is investigating two computer systems. The Alpha 8300 costs $2,761,825 and will generate cost savings of $1,1 each of the next five years. The Beta 2100 system costs $4,207,500 and will produce cost savings of $1,217,750 in the first three years and 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 factors. Round intermediate calculations and final answer to o decimal places, e.g. 1,525.) NPV of Alpha system D NPV of Beta system Which one should be chosen based on the NPV? Blossom should chose the system
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