Pinnacle Plastics Products (PPP) need to make a choice between gas-powered and electric-powered forklifts. Gas-powered forklifts...
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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. The cost of capital is 12%. You have been informed that PPP intends to use the forklift for only five years and the SV will remain the same for both alternatives. What is the PW of the gas-powered Forklift & electric-powered Forklift respectively? $ (22,921.93) & $ (28,077.15) respectively $ (20,721.49) & $ (24,896.04) respectively $ (26,887.19) & $ (31,501.68) respectively $ (20,078.07) & $ (22,422.85) respectively 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. The cost of capital is 12%. You have been informed that PPP intends to use the forklift for only five years and the SV will remain the same for both alternatives. What is the PW of the gas-powered Forklift & electric-powered Forklift respectively? $ (22,921.93) & $ (28,077.15) respectively $ (20,721.49) & $ (24,896.04) respectively $ (26,887.19) & $ (31,501.68) respectively $ (20,078.07) & $ (22,422.85) respectively
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Solution To calculate the present worth PW of the gaspowered and el... View the full answer
Related Book For
Contemporary Financial Management
ISBN: 9780324289114
10th Edition
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
Posted Date:
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