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Tracy Multinational Inc. has to decide between a gas-powered and an electric-powered forklift. The company will buy only one forklift. The gas-powered forklift costs $17,600

Tracy Multinational Inc. has to decide between a gas-powered and an electric-powered forklift. The company will buy only one forklift. The gas-powered forklift costs $17,600 and has cash flows of $5,400 per year for 6 years. The electric-powered forklift will cost $22,100 and has cash flows of $6,190 per year for 6 years.  The cost of capital is 10.57%. 


 Calculate the NPV and the IRR for each forklift. Which one should the company select? Why?  


Calculate the profitability index for both.  Which one should the company select?  Why?

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