Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help, really stuck on this one The Management of Crane Manufacturing Company is evaluating two forklift systems to use in its plant that produces
Please help, really stuck on this one
The Management of Crane 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 12 percent discount rate for all projects. Year o Year 1 Year 2 Year 3 Otis Forklifts $-3,140,450 $977,225 $1,350,886 $2.119,497 Craigmore Forklifts $-4.126,410 $888,236 $1,758.225 $2.847,110 NPV Otis forklift $317.606 Craigmore Forklifts $94.821 Compute the IRR for each of the two systems. (Round intermediate calculation to 0 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 NPVStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started