The Management of Ivanhoe Manufacturing Company is evaluating two forklift systems to use in its plant that produces the

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The Management Of Ivanhoe Manufacturing Company Is Evaluating Two Forklift Systems To Use In Its Plant That Produces The 1 (33.81 KiB) Viewed 46 times

The Management of Ivanhoe 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 9 percent discount rate for all projects. Year 0 Year 1 Year 2 Year 3 Otis Forklifts $-3.136.450 $962,225 $1,339,886 $2,113,497 Craigmore Forklifts $-4.126,410 $882.236 $1,769,225 $2.866,110 NPV Otis forklift $506,087 Craigmore Forklifts $385.265 Compute the IRR for each of the two systems. (Round intermediate calculation to decimal places, eg. 1,525 and final answers to 2 decimal places, eg. 15.10%.) IRR Otis forklift Craigmore Forklifts Is the investment decision different from the one determined by NPV? The investment decision is from the one determined by NPV. different same