A forklift will last for only 2 more years. It costs $5,800 a year to maintain. For $20,000 you can buy a new lift that can last for 9 years and should require maintenance costs of only $2,800 a year.

a-1.	Calculate the equivalent cost of owning and operatingif the discount rate is 5% per year?(Do not round intermediate calculations. Round your answer to 2 decimal places.)

Equivalent cost

$

a-2.	Should you replace the forklift?
	Yes No

b-1.	Calculate the equivalent cost of owning and operating if the discount rate is 14% per year?(Do not round intermediate calculations. Round your answer to 2 decimal places.)

Equivalent cost

$