Question: ABC, Inc. is considering whether to repair a five-year old fork lft or to purchese a used one as e replacement The cempany estimates thet
ABC, Inc. is considering whether to repair a five-year old fork lft or to purchese a used one as e replacement The cempany estimates thet it would take $3,000 to repair the existing fork aft, which is the same amount needed to purchese the used fork i Cost related information for both assets is as follows Used Fork Lif Existing Fork ut $15 000 $3.000 2.280 Repeirs cost Arnuel operating costs igs, etc $2100 Under the assumpoon that the company would like to minimize total cost, what should the company do and what are the total cost savings in the fest year? Frst Year Cost Savings 9780 Dedsion A Buy the used fork it Repair the existing tork Buy the used fork in O Oppon A O Opton D
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