Dev Industries must choose between a gas-powered and anelectric-powered forklift truck for moving materials in itsfactory. Because both forklifts perform the same function, the firmwill choose only one. (They are mutually exclusive investments.)The electric-powered truck will cost more, but it will be lessexpensive to operate; it will cost $21,000, whereas the gas-poweredtruck will cost $17,230. The cost of capital that applies to bothinvestments is 11%. The life for both types of truck is estimatedto be 6 years, during which time the net cash flows for theelectric-powered truck will be $6,100 per year and those for thegas-powered truck will be $5,300 per year. Annual net cash flowsinclude depreciation expenses.
a. Calculate the NPV for each type of truck. Do not roundintermediate calculations. Round your answers to the nearestdollar.
b. Calculate the IRR for each type of truck. Do not roundintermediate calculations. Round your answers to two decimalplaces
