Beta Engineering corporation needs a forklifting truck, they have the option to either buy the truck from company A or from company B. Company A's truck is more expensive but it is less expensive to operate. Cost of Company A's truck is $22,000, while cost of Company B's truck is 17,500. Cost of capital for both options is 12%. Total life of both the trucks is 6 years. Annual net cashflow generated by Company B's truck is $5,000 while that of Company A's truck is $6,290 each year. Beta Engineering corporation pays income tax at 40% and the cashflows given for both the truck options include depreciation expense.

You are required to decide which truck Beta Engineering corporation should buy based on calculation of IRR and NPV.

Paper solution is preferable!