Here are the cash-flow forecasts for two mutually exclusive projects:

	Cash Flows (dollars)
Year	Project A				Project B
0		114				114
1		44				63
2		64				63
3		84				63

a-1. What is the NPV of each project if the opportunity cost of capital is 4%? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

a-2. Which project would you choose?

b-1. What is the NPV of each project if the opportunity cost of capital is 15%? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

b-2. Which would you choose?

A forklift will last for only 2 more years. It costs $6,600 a year to maintain. For $21,000 you can buy a new lift that can last for 10 years and should require maintenance costs of only $3,600 a year.

a-1. Calculate the equivalent cost of owning and operating the forklift if the discount rate is 6% per year. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

a-2. Should you replace the forklift?

b-1. Calculate the equivalent cost of owning and operating the forklift if the discount rate is 15% per year. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b-2. Should you replace the forklift?