An old forklift is due for a replacement analysis. It has a current market value $10,000. The market values and operation and maintenance costs for each of the remaining years of service are given below. The MARR is 15% per year. (a) Complete the table of marginal costs of the forklift for each of the remaining years of service (b) If the challenger has a minimum EUAC of $6,961, determine whether or not to replace the forklift now. Forklift (Defender) Year MV at EOY O&M Costs 1 $7,000 $4.000 2 6,000 4,000 3 5,000 4,500 4 3,000 5,500 Click the icon to view the interest and annuity table for discrete compounding when MARR = 15% per year. Fill in the table below. (Round to the nearest dollar.) Year 1 2 Marginal Cost $ $ $ $ 3 4 Since Analysis Technique No 2 is applicable here (make sure you know why, Example 5 Module 10), calculate the defender minimum EUAC over the remaining service life: 5 (Round to the nearest dollar.) Therefore, the old forklift should be O A. kept for at least one more year O B. replaced immediately N 1 2 3 4 5 6 7 8 9 10 Discrete Compounding; i = 15% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F F/P P/F FIA P/A A/F 1.1500 0.8696 1.0000 0.8696 1.0000 1.3225 0.7561 2.1500 1.6257 0.4651 1.5209 0.6575 3.4725 2.2832 0.2880 1.7490 0.5718 4.9934 2.8550 0.2003 2.0114 0.4972 6.7424 3.3522 0.1483 2.3131 0.4323 8.7537 3.7845 0.1142 2.6600 0.3759 11.0668 4.1604 0.0904 3.0590 0.3269 13.7268 4.4873 0.0729 3.5179 0.2843 16.7858 4.7716 0.0596 4.0456 0.2472 20.3037 5.0188 0.0493 Capital Recovery Factor To Find A Given P A/P 1.1500 0.6151 0.4380 0.3503 0.2983 0.2642 0.2404 0.2229 0.2096 0.1993 An old forklift is due for a replacement analysis. It has a current market value $10,000. The market values and operation and maintenance costs for each of the remaining years of service are given below. The MARR is 15% per year. (a) Complete the table of marginal costs of the forklift for each of the remaining years of service (b) If the challenger has a minimum EUAC of $6,961, determine whether or not to replace the forklift now. Forklift (Defender) Year MV at EOY O&M Costs 1 $7,000 $4.000 2 6,000 4,000 3 5,000 4,500 4 3,000 5,500 Click the icon to view the interest and annuity table for discrete compounding when MARR = 15% per year. Fill in the table below. (Round to the nearest dollar.) Year 1 2 Marginal Cost $ $ $ $ 3 4 Since Analysis Technique No 2 is applicable here (make sure you know why, Example 5 Module 10), calculate the defender minimum EUAC over the remaining service life: 5 (Round to the nearest dollar.) Therefore, the old forklift should be O A. kept for at least one more year O B. replaced immediately N 1 2 3 4 5 6 7 8 9 10 Discrete Compounding; i = 15% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F F/P P/F FIA P/A A/F 1.1500 0.8696 1.0000 0.8696 1.0000 1.3225 0.7561 2.1500 1.6257 0.4651 1.5209 0.6575 3.4725 2.2832 0.2880 1.7490 0.5718 4.9934 2.8550 0.2003 2.0114 0.4972 6.7424 3.3522 0.1483 2.3131 0.4323 8.7537 3.7845 0.1142 2.6600 0.3759 11.0668 4.1604 0.0904 3.0590 0.3269 13.7268 4.4873 0.0729 3.5179 0.2843 16.7858 4.7716 0.0596 4.0456 0.2472 20.3037 5.0188 0.0493 Capital Recovery Factor To Find A Given P A/P 1.1500 0.6151 0.4380 0.3503 0.2983 0.2642 0.2404 0.2229 0.2096 0.1993
