The Management of Sandhill 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. Otis Forklifts Craigmore Forklifts Otis forklift Craigmore Forklifts Year 2 $-3,110,450 $964,225 $1,352,886 $-4,138,410 $861,236 $1,748,225 Year 0 NPV Year 1 $551,814 $350,223 Year 3 $2,122,497 $2,884,110 Compute the IRR for each of the two systems. (Round intermediate calculation to O decimal places, e.g. 1,525 and final answers to 2 decimal

The Management of Sandhill 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. Otis Forklifts Craigmore Forklifts Otis forklift Craigmore Forklifts Year 2 $-3,110,450 $964,225 $1,352,886 $-4,138,410 $861,236 $1,748,225 Year 0 NPV Year 1 $551,814 $350,223 Year 3 $2,122,497 $2,884,110 Compute the IRR for each of the two systems. (Round intermediate calculation to O decimal places, e.g. 1,525 and final answers to 2 decimal

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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