A forklift will only last 2 more years. It costs $5,500 a year to maintain. For $25,000 you can buy a new elevator that can last for 15 years and only requires $2,500 per year in maintenance costs. a-1. Calculate the equivalent cost of owning and operating the forklift if the discount rate is 4% per year. (Do not round up intermediate calculations. Round your answer to 2 decimal places.) a-2. Should you replace the forklift? Yes No b-1. Calculate the equivalent cost of owning and operating the forklift if the discount rate is 12% per year. (Do not round up intermediate calculations. Round your answer to 2 decimal places.) b-2. Should you replace the forklift? Explain your reasoning.

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a1 The equivalent cost of owning and operating the forklift can be calculated as the present value o... View the full answer