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 below. 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

Otis = $3,123,450

Craigmore = $4,137,410

Year 1

Otis = $979,225

Craigmore = $875,236

Year 2

otis = $1,358,886

Craigmore = $1,765,225

Year 3

Otis = $2,111,497

Craigmore = $2,865,110