An old forklift is due for a replacement analysis. It has a current market value $10,000....

 

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An old forklift is due for a replacement analysis. It has a current market value $10,000. The market values and operation and maintenance costs for each of the remaining years of service are given below. The MARR is 12% рer year. (a) Complete the table of marginal costs of the forklift for each of the remaining years of service. (b) If the challenger has a minimum EUAC of $7,397, determine whether or not to replace the forklift now. Forklift (Defender) Year MV at EOY O&M Costs 1 $6,000 $4,000 2 4,500 4,000 3,500 4,500 4 1,500 5,500 Click the icon to view the interest and annuity table for discrete compounding when MARR = 12% per year. Fill in the table below. (Round to the nearest dollar.) Year Marginal Cost 1 4 Since Analysis Technique No 2 is applicable here (make sure you know why, Example 5 Module 10), calculate the defender minimum EUAC over the remaining service life: $. (Round to the nearest dollar.) %24 %24 %24 An old forklift is due for a replacement analysis. It has a current market value $10,000. The market values and operation and maintenance costs for each of the remaining years of service are given below. The MARR is 12% рer year. (a) Complete the table of marginal costs of the forklift for each of the remaining years of service. (b) If the challenger has a minimum EUAC of $7,397, determine whether or not to replace the forklift now. Forklift (Defender) Year MV at EOY O&M Costs 1 $6,000 $4,000 2 4,500 4,000 3,500 4,500 4 1,500 5,500 Click the icon to view the interest and annuity table for discrete compounding when MARR = 12% per year. Fill in the table below. (Round to the nearest dollar.) Year Marginal Cost 1 4 Since Analysis Technique No 2 is applicable here (make sure you know why, Example 5 Module 10), calculate the defender minimum EUAC over the remaining service life: $. (Round to the nearest dollar.) %24 %24 %24

Answer rating: 100% (QA)

ANSWERS The marginal cost in any year k has three components namely 1 Loss in ... View the full answer