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4) The Costa Rican Coffee Company is evaluating a within-plant distribution system for its new...

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4) The Costa Rican Coffee Company is evaluating a within-plant distribution system for its new roasting, grinding, and packing plant. The two alternatives are (1) a conveyor system, and (2) several forklift trucks. The decision to construct the plant has already been made, and the choice of the distribution system will have no effect on the overall revenues of the project. The appropriate cost of capital is 9%. The projects' expected net costs are Expected Net Cash Costs (S) Year Conveyor 300,000 66,000 66,000 66,000 66,000 66,000 Forklift 120,000 96,000 96,000 96,000 96,000 96,000 4 a) b) What is the IRR of each alternative? What is the present value of costs of each alternative? Which distribution system should be chosen

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