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Problem 10.17 Blossom Mills management is evaluating two alternative heating systems. Costs and projected energy savings are

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System 100 Time Cash Flows Present Value Factor Present Value B = (1/1.115)^n C=A*B System 200 Time Cash Flows n A Present V:Net Present value

System 100 = $217,221

System 200 = -$208,239

Net present value of System 200 is Negative, So, it should be rejected

System 100 should be Accepted.

So, Blossom should choose system 100

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