Problem 10.14 Champlain Corp. management is investigating two computer systems. The Alpha 3300 costs $2,341,225 and will generate cost savings of
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Problem 10.14 Champlain Corp. management is investigating two computer systems. The Alpha 3300 costs $2,341,225 and will generate cost savings of $1,009,125 ineach of the next five years. The Beta 2100 system costs $2,012,500 and will produce cost savings of $343,250 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 NW for the two systems? (Enter negative amounts using negative sign, e.g. 45.25. Do not round discount factors. Round otherintermediate caicuiaflons and flnai answer to 0 decimai planes, e.g. L525.) l'liP'ur of Alpha system $ l'ilP'ur of Beta system $ which one should be chosen based on the NW? Champlain should chose the :3 system.
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