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The Management of Cullumber Manufacturing Company is evaluating two forklift systems to use in its...

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Accounting

The Management of Cullumber 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 11 percent discount rate for all projects.

Year 0 Year 1 Year 2 Year 3

Otis Forklifts

 $-3,104,450 $961,225 $1,358,886 $2,114,497

Craigmore Forklifts

 $-4,123,410 $893,236 $1,754,225 $2,862,110

NPV

Otis forklift

 $410,522

Craigmore Forklifts

 $197,825

Compute the IRR for each of the two systems. (Round intermediate calculation to 0 decimal places, e.g. 1,525 and final answers to 2 decimal places, e.g. 15.10%.)

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