Problem $8-38$ Replacement Decision $($LO$5)$

A forklift will last for only $4$ more years. It costs $$6,900$ a year to maintain. For $$24,000$ you can buy a new lift that can last for $12$ years

and should require maintenance costs of only $$3,900$ a year.

a$-1.$ Calculate the equivalent cost of owning and operating the forklift if the discount rate is $5\%$ per year.

Note: 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 $13\%$ per year.

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

b$-2.$ Should you replace the forklift?