The Management of Sunland Manufacturing Company is evaluating two forklift systems to use in its plant that produces the towers for a windmill power
The Management of Sunland Manufacturing Company is evaluating two forklift systems to use in its plant that produces the towers for a windmill power farm. The costs and the cash flows from these systems are shown below. The company uses a 11 percent discount rate for all projects. Otis Forklifts Craigmore Forklifts Year O Otis forklift $-3,141,450 $-4,128,410 NPV $ Year 1 Craigmore Forklifts $ $999,225 $885,236 Calculate net present value (NPV). (Enter negative amounts using negative sign e.g. -45.25. Do not round Discount factors. Round other intermediate calculations and final answers to O decimal places, e.g. 1,525.) Year 2 $1,342,886 $1,765,225 Year 3 $2,108,497 $2,882,110 Determine which forklift system should be purchased. forklift system should be purchased.
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