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Premium Manufacturing Company is evaluating two forklift systems to use in its plant that produces the towers for a windmill power farm. The costs and
Premium 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 here. If the company uses a 12 percent discount rate for all projects, determine which forklift system should be purchased using the net present value (NPV) approach. Year 0 Year 1 Year 2 Year 3 Otis Forklifts $3,123,450 $979,225 $1,358,886 $2,111,497 CraigmoreForklifts $4,137,410 $875,236 $1,765,225 $2,865,110
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