35. Replacement decisions. (S6.4) A forklift will last for only two more years. It costs $5,000 a...
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35. Replacement decisions. (S6.4) A forklift will last for only two more years. It costs $5,000 a year to maintain. For $20,000 you can buy a new forklift that can last for 10 years and should require maintenance costs of only $2,000 a year.
a. If the discount rate is 4% per year, should you replace the forklift?
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Principles Of Corporate Finance
ISBN: 9781264080946
14th Edition
Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans
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