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Current Attempt in Progress The Management of Sandhill Manufacturing Company is evaluating two forklift systems to use in its plant that produces the towers for

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Current Attempt in Progress The Management of Sandhill 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 8 percent discount rate for all projects. Year 0 Year 1 Year 2 Year 3 Otis Forklifts $-3,120,450 $965,225 $1,362,886 $2,097,497 Craigmore Forklifts $-4,122,410 $871,236 $1,782,225 $2,858,110 NPV Otis forklift $606,793 Craigmore Forklifts $481,121 Compute the IRR for each of the two systems. (Round intermediate calculation to decimal places, e.g. 1,525 and final answers to 2 decimal places, e.g. 15.10%.) IRR Otis forklift % Craigmore Forklifts % Is the investment decision different from the one determined by NPV? The investment decision is from the one determined by NPV

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