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1 2 . 1 0 A local U . S . Postal Service office is consider - ing purchasing a 4 , 0 0 0

12.10 A local U.S. Postal Service office is consider-
ing purchasing a 4,000-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. Battery-powered
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 P12.10). 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 200 and 260 shifts. Since the U.S. Postal
Service does not pay income taxes, no depreciation
or tax information is required. The U.S. government
uses 10% 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)
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