Question: Replacement Decision: A Forklift will last for only 2 more years. It costs $5,000 a year to maintain. For $20,000 you can buy a new

Replacement Decision: A Forklift will last for only 2 more years. It costs $5,000 a year to maintain. For $20,000 you can buy a new fork lift that can last for 10 years and should require maintenance costs of only $2,000 per year. If the discount rate is 4% per year should you replace the Fork Lift? What if the discount rate is 12%

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