A forklift will only last 4 more years. It costs $6,900 a year to maintain. For $24,000
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A forklift will only last 4 more years. It costs $6,900 a year to maintain. For $24,000 you can buy a new lift that can last for 12 years and only requires $3,900 per year in maintenance costs.
a-1. Calculate the equivalent cost of owning and operating the forklift if the discount rate is 5% per year. (Do not round up intermediate calculations. Round your answer to 2 decimal places.)
b-1. Calculate the equivalent cost of owning and operating the forklift if the discount rate is 13% per year. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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