Question
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 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 | Year 1 | Year 2 | Year 3 |
| Otis | $3,123,450 | $979,225 | $1,358,886 | $2,111,497 |
| Craigmore | $4,137,410 | $875,236 | $1,765,225 | $2,865,110 |
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Auditing A Practical Manual For Auditors
Authors: Lawrence Robert Dicksee
1st Edition
1360462546, 978-1360462547
