An old forklift is due for a replacement analysis. It has a current market value $9,000. The market values and operation and maintenance costs for each of theremaining years of service are given below. The MARR is 11% per year.(a) Complete the table of marginal costs of the old forklift for each(b) If the challenger has a minimum EUAC of $4,213, answer the two additional questions.the remaining years of service.Forklift (Defender)YearMV at EOYO&M Costs1$7,0006,000$2,0002,0002,5003,5005,00043,000Click the icon to view the interest and annuity table for discrete compounding when MARR = 11% per year.Fill in the table below. (Round to the nearest dollar.)YearMarginal Cost13(b) Since Analysis Technique No 2 is applicable here (make sure you know why, Example 5 Module 10), which additional calculation is required before thereplacement decision can be made?O A. The minimum EUAC of the defender over its remaining lifeO B. The minimum marginal cost of the challenger4(b) Since Analysis Technique No 2 is applicable here (make sure you know why, Example 5 Module 10), which additional calculation is required before thereplacement decision can be made?O A. The minimum EUAC of the defender over its remaining lifeO B. The minimum marginal cost of the challengerThen, the decision will be made to replace the defender ifA. The minimum marginal cost of the challenger is higher than the first year marginal cost of the defenderO B. The minimum EUAC of the defender is higher than the minimum EUAC of the challengerO C. The minimum EUAC of the defender is lower than the minimum EUAC of the challengerDiscrete Compounding; i=11%Single PaymentUniform SeriesCompoundAmountPresentWorth FactorCompoundAmountSinkingFundCapitalRecoveryFactorPresentFactorFactorWorth FactorFactorTo Find FTo Find PTo Find FTo Find PTo Find ATo Find AGiven PGiven FGiven AGiven AGiven FGiven PF/PP/FFIAPIAA/FA/P11.11000.90091.00000.90091.00001.11001.23210.81162.11001.71250.47390.58391.36760.73123.34212.44370.29920.409241.51810.65874.70973.10240.21230.32231.68510.59356.22783.69590.16060.27061.87040.53467.91294.23050.12640.236472.07620.48179.78334.71220.10220.21222.30450.433911.85945.14610.08430.19432.55800.390914.16405.53700.07060.1806102.83940.352216.72205.88920.05980.16982 3LO1199

Answer The marginal cost in any year k, has three components, namely (1) Loss in the market…

An old forklift is due for a replacement analysis. It has a current market value $9,000. The market values and operation and maintenance costs for each of the remaining years of service are given below. The MARR is 11% per year. (a) Complete the table of marginal costs of the old forklift for each of the remaining years of service. (b) If the challenger has a minimum EUAC of $4,213, answer the two additional questions. Forklift (Defender) Year MV at EOY O&M Costs 1 $7,000 $2,000 2. 6,000 2.000 3 5,000 2,500 4. 3,000 3,500 Click the icon to view the interest and annuity table for discrete compounding when MARR = 11% per year. Fill in the table below. (Round to the nearest dollar.) Year Marginal Cost 1 2 4 (b) Since Analysis Technique No 2 is applicable here (make sure you know why, Example 5 Module 10), which additional calculation is required before the replacement decision can be made?

An old forklift is due for a replacement analysis. It has a current market value $9,000. The market values and operation and maintenance costs for each of the remaining years of service are given below. The MARR is 11% per year. (a) Complete the table of marginal costs of the old forklift for each of the remaining years of service. (b) If the challenger has a minimum EUAC of $4,213, answer the two additional questions. Forklift (Defender) Year MV at EOY O&M Costs 1 $7,000 $2,000 2. 6,000 2.000 3 5,000 2,500 4. 3,000 3,500 Click the icon to view the interest and annuity table for discrete compounding when MARR = 11% per year. Fill in the table below. (Round to the nearest dollar.) Year Marginal Cost 1 2 4 (b) Since Analysis Technique No 2 is applicable here (make sure you know why, Example 5 Module 10), which additional calculation is required before the replacement decision can be made?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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