Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1 2 . 1 0 A local U . S . Postal Service office is consider - ing purchasing a 4 , 0 0 0
A local US Postal Service office is consider
ing purchasing a pound forklift truck, which
will be used primarily for processing incoming as
well as outgoing postal packages. Forklift trucks tra
ditionally have been fueled by either gasoline, liquid
propane gas LPG or diesel fuel. Batterypowered
electric forklifts, however, are increasingly popular
in many industrial sectors due to the economic and
environmental benefits that accrue from their use.
Therefore, the postal service is interested in compar
ing forklifts that use the four different types of fuel
Table P The purchase costs as well as annual
operating and maintenance costs are provided by a
local utility company and the Lead Industries Asso
ciation. Annual fuel and maintenance costs are meas
ured in terms of number of shifts per year, where one
shift is equivalent to eight hours of operation.
The postal service is unsure of the number of shifts
per year, but it expects it should be somewhere
between and shifts. Since the US Postal
Service does not pay income taxes, no depreciation
or tax information is required. The US government
uses as an interest rate for any project evalua
tion of this nature. Develop a sensitivity graph that
shows how the choice of alternatives changes as a
function of number of shifts per year.
Please use Excel and show the equations used and plot present values vs the number of shifts
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started