Question: Pinnacle Plastics Products (PPP) need to make a choice between gas-powered and electric-powered forklifts. Gas-powered forklifts have an initial cost of $21,500, an AOC of
Pinnacle Plastics Products (PPP) need to make a choice between gas-powered and electric-powered forklifts. Gas-powered forklifts have an initial cost of $21,500, an AOC of $550, and can be sold for $6,000 after its life. Electric-powered Forklifts have an initial cost of $25,250, a salvage value of $8,000, and an AOC of $475. Both have a life of 8 years and the cost of capital is 12%. What is the PW of the gas-powered Forklift & electric-powered Forklift?
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