Champlain Corp. is investigating two computer systems. The Alpha 8300 costs $3,159,153 and will generate cost savings of $1,121,703 in each of the next five years. The Beta 2100 system costs $4,291,088 and will produce cost savings of $1,012,773 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. Round answers to 2 decimal places, e.g. 15.25.)
NPV of Alpha system?
NPV of Beta system?
Which one should be chosen based on the NPV?