The Management of Pharoah 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		$-3,107,450		$986,225		$1,356,886		$2,131,497
Craigmore Forklifts		$-4,127,410		$880,236		$1,758,225		$2,855,110

		NPV
Otis forklift		$661,083
Craigmore Forklifts		$461,496

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		___________________ %
Craigmore Forklifts		___________________ %

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

The investment decision is same/different from the one determined by NPV.