Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please solve using Excel if possible and show equations used. Thanks A 2000-pound, couterbalanced, electric forklift can be purchased for $25,000 plus $3000 for the
Please solve using Excel if possible and show equations used. Thanks
A 2000-pound, couterbalanced, electric forklift can be purchased for $25,000 plus $3000 for the charger and $3000 for a battery. The forklift's market value is 15% less for each of its first 6 years of service. After this period the market value declines at a rate of 7.5% for the next 6 years. The battery has a life of 12 years and a salvage value of $300. The charger has a 12-year life and a $100 salvage value. The charger's market value declines 20% per year of use. The battery's market value declines by 15% of its purchase price each year. Maintenance of the charger and battery are minimal. The battery will most likely not work with a replacement forklift. Maintenance of the forklift is $400 per year during Year 1 and 2 while the warranty is in place. In year 3 it jumps to $800 and increases $500 per year thereafter. What is the optimal ownership policy using i =10%Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started