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
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
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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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 10 percent discount rate for all projects.
| Year 0 | Year 1 | Year 2 | Year 3 | |||||
|---|---|---|---|---|---|---|---|---|
| Otis Forklifts | $-3,109,450 | $995,225 | $1,376,886 | $2,092,497 | ||||
| Craigmore Forklifts | $-4,128,410 | $856,236 | $1,750,225 | $2,851,110 |
Calculate
| 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.
| select the forklift system forklift system should be purchased. |
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