The Management of Oriole 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 8 percent discount rate for all projects. Year 0 Year 1 Year 2 Year 3 Otis Forklifts $-3,114,450 $978,225 $1,365,886 $2,113,497 Craigmore Forklifts $-4,118,410 $861,236 $1,747,225 $2,857,110 NPV Otis forklift $640,103 Craigmore Forklifts $445,061 Compute the IRR for each of the two systems. (Round intermediate calculation to 0 decimal places, e.g. 1,525 and final answers to 2 decimal places, e.g. 15.10%.)

IRR Otis forklift enter percentages rounded to 2 decimal places % Craigmore Forklifts enter percentages rounded to 2 decimal places %

Is the investment decision different from the one determined by NPV?

The investment decision is select an option from the one determined by NPV.