Chatham Automotive purchased new electric forklifts to move steel automobile parts two years ago. They cost

$80,000

each, including the charging stand. Inpractice, it was found that they did not hold a charge as long as claimed by themanufacturer, so operating costs are very high. As aresult, their current salvage value is about $10,000. Chatham is considering replacing them with propane models. New propane forklifts cost $59,000 each. After oneyear, they have a salvage value of $40,000, and thereafter decline in value at adeclining-balance depreciation rate of 20 percent, as does the electric model from this time on. The MARR is 7 percent. Operating costs for the electric model will be

$19,000 thisyear, rising by 13 percent per year. Operating costs for the propane model will initially be $12,000 over the firstyear, rising by 13 percent per year. Should Chatham Automotive replace the forkliftsnow?

Click the icon to view the table of compound interest factors for discrete compounding periods when i=7%. Chatham Automotive (should

should not) replace the forklifts now since the minimum total EAC for the electric forklifts is

$enter your response here, which is (lower higher) than $enter your response here, the minimum total EAC for the propane forklifts. (Round to the nearest dollar asneeded.)

Pls show all the calculations