The Management of Crane 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. Otis Forklifts Craigmore Forklifts Otis forklift Craigmore Forklifts Otis forklift Year 2 Year 0 $-3,140,450 $977,225 $1,350,886 $-4,126,410 $888,236 $1,758,225 Craigmore Forklifts NPV $317,606 $94,821 Compute the IRR for each of the two systems. (Round intermediate calculation to O decimal places, e.g. 1,525 and final answers to 2 decimal places, e.g. 15.10%.) IRR Year 1 The investment decision is % % Is the investment decision different from the one determined by NPV? Year 3 $2,119,497 $2,847,110 from the one determined by NPV.

forali grojects. Compute the IRR for each of the two systems. (Hound intermedlate calculotion to 0 dechmal ploces e8.1.525 and final ansuers fo 2 decimal places, es. 15.10x. is the investment decision ditferent from the one determined br NPV? The irmestment dccition is from the ane determined by take