Solution-Determine which forklift system should be purchased

Determine which forklift system should be purchased

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Reference no: EM133187229

Question - The Management of Premium 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. If the company uses a 12 percent discount rate for all projects, determine which forklift system should be purchased using the net present value (NPV) approach.

	Year 0	Year 1	Year 2	Year 3
Otis Forklifts	-$3,123,450	$979,225	$1,358,886	$2,111,497
Craigmore Forklifts	-$4,137,410	$875,236	$1,765,225	$2,865,110

Reference no: EM133187229

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Determine which forklift system should be purchased

Reference no: EM133187229

Reference no: EM133187229

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