Question

Problem 10.17 Wildhorse 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 System 100 System 200 0 -$1,409,300 -$2,070,600 1 266,810 893,100 2 441,230 579,400 3 731,540 625,600 4 723,700 449,200 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? Wildhorse should choose

          Problem 10.17
Wildhorse 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	System 100	System 200
0	-$1,409,300	-$2,070,600
1	266,810	893,100
2	441,230	579,400
3	731,540	625,600
4	723,700	449,200
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?
Wildhorse should choose

Problem 10.17
Wildhorse 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 System 100 System 200
0 -1,409,300 -2,070,600
1 266,810 893,100
2 441,230 579,400
3 731,540 625,600
4 723,700 449,200
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?
Wildhorse should choose

Added by Eduardo L.

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