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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