A forklift will last for only 3 more years. It costs $6,000 a year to maintain. For $17,000 you can buy a new lift that can last for 8years and should require maintenance costs of only $3,000 a year.a-1. Calculate the equivalent cost of owning and operating the forklift if the discount rate is 5% per year.Note: Do not round intermediate calculations. Round your answer to 2 decimal places.a-2. Should you replace the forklift?b-1. Calculate the equivalent cost of owning and operating the forklift if the discount rate is 12% per year.Note: Do not round intermediate calculations. Round your answer to 2 decimal places.b-2. Should you replace the forklift?a-1. Equivalent costa-2. Should you replace the forklift?b-1. Equivalent costb-2. Should you replace the forklift?

Answered: Image /qna-images/answer/7de723a3-63c1-48d6-b83f-fe7fff86d876.jpg

Answered: A forklift will last for only 3 more…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Not sure what the table factor would be

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