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The Management of Blossom Manufacturing Company is evaluating two forklift systems to use in its plant that produces the towers for a windmill power farm

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The Management of Blossom 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 8 percent discount rate for all projects.

Otis Forklifts Year 0 = -$3,143,450 

Year 1 = $959,225

 Year 2 = $1,338,886

 Year 3 = $2,091,497

 

Craigmore Forklifts Year 0 = -$4,157,410

Year 1 = $855,236 

Year 2 = $1,745,225 

Year 3 = $2,845,110

NPV

Otis forklift $552,898

Craigmore Forklifts $389,264

Compute the IRR for each of the two systems. 

Otis forklift ______________%

Craigmore forklift ___________%