Calculate equivalent cost of owning and operating forklift

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Reference no: EM132018431

A forklift will last for only 2 more years. It costs $5,500 a year to maintain. For $25,000 you can buy a new lift that can last for 15 years and should require maintenance costs of only $2,500 a year. a-1. Calculate the equivalent cost of owning and operating the forklift if the discount rate is 4% per year. (Do not round intermediate calculations. Round your answer to 2 decimal places.) a-2. Should you replace the forklift? Yes No b-1. Calculate the equivalent cost of owning and operating the forklift if the discount rate is 12% per year. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b-2. Should you replace the forklift? Yes No.

Reference no: EM132018431

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