Equivalent cost of owning and operating the forklift

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Reference no: EM13883355

A forklift will last for only 2 more years. It costs $5,300 a year to maintain. For $23,000 you can buy a new lift that can last for 10 years and should require maintenance costs of only $2,300 a year.

The equivalent cost of owning and operating the forklift if the discount rate is 5% per year is $5,278.61

What is the equivalent cost of owning and operating the forklift if the discount rate is 14% per year? (Do not round intermediate calculations. Round your answer to 2 decimal places).

Reference no: EM13883355

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