The Management of Premium 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. If the company uses a 12 percent discount rate for all projects, determine which forklift system should be purchased using the net present value (NPV) approach.

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Year 0 Year l Year 2 Year 3 Otis Forklifts -S3,123,450 S979,225 S1,358,886 S2,111,497 Craigmore Forklifts 4,137,410 $875,236 S1,765,225S2,865,110