A forklift will last for only 3 more years. It costs $5,200 a year to maintain. For $22,000 you can buy a new lift that can last for 10 years and should require maintenance costs of only $2,200 a year.

a-1.Calculate the equivalent cost of owning and operating the forklift if the discount rate is 4% per year.(Do not round intermediate calculations. Round your answer to 2 decimal places.)

a-2.Should you replace the forklift?

b-1.Calculate the equivalent cost of owning and operating the forklift if the discount rate is 12% per year.(Do not round intermediate calculations. Round your answer to 2 decimal places.)

b-2.Should you replace the forklift?