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The Management of Carla Vista Manufacturing Company is evaluating two forklift systems to use in its plant that produces the towers for a windmill power
The Management of Carla Vista 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 0 Year 1 Year 2 Year 3 $-3,133,450 Otis Forklifts Craigmore Forklifts $975,225 $869,236 $1,339,886 $1,779,225 $2,122,497 $2,858,110 $-4,129,410 Calculate net present value (NPV). (Enter negative amounts using negative signeg.-45.25. Do not round Discount factors. Round other intermediate calculations and final answers to decimal places, eg. 1,525.) NPV Otis forklift $ Craigmore Forklifts $ Determine which forklift system should be purchased. forklift system should be purchased
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