A forklift will last for only 3 more years. It costs $6,400 a year to maintain. For $19,000 you can buy a new lift that can last for 10 years and should require maintenance costs of only $3,400 a year.

a-1.	Calculate the equivalent cost of owning and operating the forklift if 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 the forklift if the discount rate is 13% per year.(Do not round intermediate calculations. Round your answer to 2 decimal places.)

Equivalent cost

$

b-2.

Should you replace the forklift?

	Yes
	No