Question: Sandhill Corp. management is investigating two computer systems. The Alpha 8 3 0 0 costs $ 2 , 8 2 7 , 3 2 5
Sandhill Corp. management is investigating two computer systems. The Alpha costs $ and will generate cost savings of $ in each of the next five years. The Beta system costs $ and will produce cost savings of $ each year in the first three years and then $ million each year for the next two years. The company's discount rate for similar projects is percent.
What is the NPV of each system? Enter negative amounts using negative sign, eg Do not round discount factors. Round other intermediate calculations and final answer to decimal places, eg
NPV of Alpha system
$
NPV of Beta system
$
Which one should be chosen based on the NPV
Sandhill should choose the system.
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