Emporia Mills management is evaluating two alternative heating systems. Costs and projected energy savings are given in the following table. The firm uses 11.01 percent to discount such project cash flows.

Year System 100 System 200

0 $-1,623,125 $-2,005,487

1 210,656 666,600

2 618,572 611,398

3 781,003 580,643

4 697,375 379,577

What is the NPV of the systems? (Enter negative amounts using negative sign e.g. -45.25. Round answers to 2 decimal places, e.g. 15.25.)

NPV of system 100 is $

NPV of system 200 is $

Which system should be chosen?

Emporia should choose