Battery (three trucks) Hydrogen (one truck) Initial $250,000 $400,000 investment Cost of $60,000 per year $30,000 per year operation Useful life 6 уears 8 years
Battery (three trucks) Hydrogen (one truck) Initial $250,000 $400,000 investment Cost of $60,000 per year $30,000 per year operation Useful life 6 уears 8 years
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
The Advantgard Company plans to make a “green” investment in its forklift truck fleet. A hydrogen fuel-cell powered forklift will do the work of three battery-pack forklifts because of the time required to recharge the batteries. If the MARR is 20% per year, which type of forklift should be recommended? Use the IRR method. The salvage values of both types of trucks are negligible.
Transcribed Image Text:Battery (three
trucks)
Hydrogen
(one truck)
Initial
$250,000
$400,000
investment
Cost of
$60,000 per year $30,000 per year
operation
Useful life
6 уears
8 years
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