Question: Problem 10.17 Sheridan Mills management is evaluating two alternative heating systems. Costs and projected energy savings are given in the following table. The firm uses

 Problem 10.17 Sheridan Mills management is evaluating two alternative heating systems.

Problem 10.17 Sheridan Mills management is evaluating two alternative heating systems. Costs and projected energy savings are given in the following table. The firm uses 11.5 percent to discount such project cash flows. Year 0 Nm System 100 System 200 -$1,737,200 -$1,773,400 267,710 883,800 574,430 634,100 629,240 488,800 803,500 413,900 What is the NPV of the systems? (Enter negative amounts using negative sign, e.g. -45.25. Do not round discount factors and intermediate calculations, Round final answers to 0 decimal places, e.g. 5,275.) NPV of system 100 is NPV of system 200 is Which system should be chosen? Sheridan should choose Click if you would like to Show Work for this question: Open Show Work

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