The Management of Sandhill 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
Otis Forklifts	$13,137,450	$972,225	$1,372,886	$2,116,497
Craigmore Forklifts	$-4,136,410	$894,236	$1,746,225	$2,884,110

Calculate net present value (NPV). (Enter negative amounts using negative sign e.g. -45.25. Do not round Discount factors.Round other intermediate calculations and final answers to 0 decimal places, e.g. 1,525.)

NPV
Otis Forklift	$__________
Craigmore Forklifts	$ __________

Determine which forklift system should be purchased. Craigmore/Otis forklift system should be purchased.