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The Management of Carla Vista Manufacturing Company is evaluating two forklift systems to use in...

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Accounting

The Management of Carla Vista 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 $-3,133,450 $975,225 $1,339,886 $2,122,497
Craigmore Forklifts $-4,129,410 $869,236 $1,779,225 $2,858,110

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

 $enter a dollar amount rounded to 0 decimal places

Craigmore Forklifts

 $enter a dollar amount rounded to 0 decimal places

Determine which forklift system should be purchased.

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