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The management of Blossom Manufacturing company is evaluating to forklift systems to use in its plant that produces the towers for a windmill power farm.
The management of Blossom Manufacturing company is evaluating to forklift systems to use in its plant that produces the towers for a windmill power farm. The cost and the cash flows from these systems are shown below. The company uses a 9% discount rate for all projects.
Year 0 Year 1 Year 2 Year 3 Otis Forklifts $-3,141,450 $987,225 $1,338,886 $2,114,497 Craigmore Forklifts $-4,121,410 $892,236 $1,763,225 $2,855,110 Otis forklift NPV $523,955 $385,895 Craigmore Forklifts Year 0 Year 1 Year 2 Year 3 Otis Forklifts $-3,141,450 $987,225 $1,338,886 $2,114,497 Craigmore Forklifts $-4,121,410 $892,236 $1,763,225 $2,855,110 Otis forklift NPV $523,955 $385,895 Craigmore Forklifts Compute the IRR for each of the two systems
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