Question: Problem 10.14 Champlain Corp. management is investigating two computer systems. The Alpha 8300 costs $2,761,825 and will generate cost savings of $1,186,025 in each of




Problem 10.14 Champlain Corp. management is investigating two computer systems. The Alpha 8300 costs $2,761,825 and will generate cost savings of $1,186,025 in each of the next five years. The Beta 2100 system costs $4,207,500 and will produce cost savings off 1,217,750 in the first three years and then $2 million for the next two years. If the company's discount rate for similar projects is 14 percent: What is the NPV for the two systems? (Enter negative amounts using negative sign, e.g. -45.25. Do not round discount factors. Round other intermediate calculations and final answer to o decimal places, e.g. 1,525.) NPV of Alpha system NPV of Beta system Which one should be chosen based on the NPV? Champlain should chose the system
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