Average expense operating expense yearone 4000 yearyear 2 (4000)3(4500) yearthree 4 5000year 5 5500slavage Value year 1 (6000)2 (5000)3 (4000)4( 2500)5(1250) **Forklift Truck Replacement Analysis**A manufacturer moves pallets of materials using a forklift truck. The manufacturer has consistently utilized the same make and model of forklift over several years. The purchase price has been relatively constant at $8,000 each. Records of operation and maintenance indicate these average expenses per year as a function of the vehicle's age. The salvage (market) values of the forklift are also well known as a function of age. The task is to determine the optimal time to replace the forklift truck when the Minimum Attractive Rate of Return (MARR) is 13% per year.### Interactive Tools- **Average Expenses per Year:** Click to view detailed yearly expenses.- **Salvage Values:** Click to see the salvage (market) values of the forklift over time.- **Interest and Annuity Table:** Click to access the interest and annuity table for discrete compounding at a MARR of 13% per year.### Replacement Analysis Table| Year | EUAC ($) ||------|----------|| 1 | [Input] || 2 | [Input] || 3 | [Input] || 4 | [Input] || 5 | [Input] |*Please fill in the table above, rounding to the nearest dollar. The entries will be calculated based on the provided data and tools.*The provided resources and interactive tools are designed to assist in the comprehensive analysis needed to make an informed decision regarding the replacement timing of your forklift trucks.

In the provided question, the operating expenses and salvage value is different in every year. Thus,…

manufacturer moves pallets of materials with a forklift truck. He has consistently used the same make and model of orklift over the past several years. The purchase price has been relatively constant at $8,000 each. Records of peration and maintenance indicate these average expenses per year as a function of age of the vehicle. The =alvage (market) values of the forklift are also reasonably well known as a function of age. Find the best time to replace a forklift truck when the MARR = 13% per year. Click the icon to view the average expenses per year. Click the icon to view the salvage (market) values of the forklift. Click the icon to view the interest and annuity table for discrete compounding when MARR = 13% per year. Fill the table below. (Round to the nearest dollar.) Year 1 2345 ... EUAC $ $ $ $ $

manufacturer moves pallets of materials with a forklift truck. He has consistently used the same make and model of orklift over the past several years. The purchase price has been relatively constant at $8,000 each. Records of peration and maintenance indicate these average expenses per year as a function of age of the vehicle. The =alvage (market) values of the forklift are also reasonably well known as a function of age. Find the best time to replace a forklift truck when the MARR = 13% per year. Click the icon to view the average expenses per year. Click the icon to view the salvage (market) values of the forklift. Click the icon to view the interest and annuity table for discrete compounding when MARR = 13% per year. Fill the table below. (Round to the nearest dollar.) Year 1 2345 ... EUAC $ $ $ $ $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Average expense operating expense year

one 4000 year

year 2 (4000)

3(4500) year

three 4 5000

year 5 5500

slavage Value

year 1 (6000)

2 (5000)

3 (4000)

4( 2500)

5(1250)

**Forklift Truck Replacement Analysis**

A manufacturer moves pallets of materials using a forklift truck. The manufacturer has consistently utilized the same make and model of forklift over several years. The purchase price has been relatively constant at $8,000 each. Records of operation and maintenance indicate these average expenses per year as a function of the vehicle's age. The salvage (market) values of the forklift are also well known as a function of age. The task is to determine the optimal time to replace the forklift truck when the Minimum Attractive Rate of Return (MARR) is 13% per year.

### Interactive Tools
- **Average Expenses per Year:** Click to view detailed yearly expenses.
- **Salvage Values:** Click to see the salvage (market) values of the forklift over time.
- **Interest and Annuity Table:** Click to access the interest and annuity table for discrete compounding at a MARR of 13% per year.

### Replacement Analysis Table

| Year | EUAC ($) |
|------|----------|
| 1 | [Input] |
| 2 | [Input] |
| 3 | [Input] |
| 4 | [Input] |
| 5 | [Input] |

*Please fill in the table above, rounding to the nearest dollar. The entries will be calculated based on the provided data and tools.*

The provided resources and interactive tools are designed to assist in the comprehensive analysis needed to make an informed decision regarding the replacement timing of your forklift trucks.

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