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LenDin Company uses forklifts to move heavy products. Recently one of the forklift has not functioned well and management is considering updating the forklift with
LenDin Company uses forklifts to move heavy products. Recently one of the forklift has not functioned well and management is considering updating the forklift with a faster model. Current Printer New Model Original purchase cost $30,000 $14,000 Accumulated depreciation 17,000 Book value 8,000 Estimated operating costs (annual) 3,000 1,000 Useful life 4 years 4 years If sold now, the forklift would have a salvage value of $5,000. If operated for the remainder of its useful life, the current forklift printer would have zero salvage value. The new forklift is expected to have zero salvage value after four years. Should LenDin retain or replace the forklift?
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