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Blossom Corp. management is investigating two computer systems. The Alpha 8300 costs $3,324,225 and will generate...

Blossom Corp. management is investigating two computer systems. The Alpha 8300 costs $3,324,225 and will generate cost savings of $1,213,225 in each of the next five years. The Beta 2100 system costs $4,000,500 and will produce cost savings of $1,115,750 in the first three years and then $2 million for the next two years. The company’s discount rate for similar projects is 14 percent.

What is the NPV of each system? (Enter negative amounts using negative sign, e.g. -45.25. Do not round discount factors. Round other intermediate calculations and final answer to 0 decimal places, e.g. 1,525.)

NPV of Alpha system $
NPV of Beta system $



Which one should be chosen based on the NPV?

Blossom should chose the ____ system.

A. Beta 2100

B. Alpha 8300
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