Problem 3 (25%) A company purchased new electric forklifts two years ago. They cost $75 000 each, including a charging stand. In practice, it was found that they did not hold their charge as long as claimed by the manufacturer, so operating costs are very high. As a result, their current salvage value is $10 000. The company is considering replacing them with propane models. New propane forklifts cost $58 000 each. After one year, they have a salvage value of $40 000, and thereafter decline in value at a declining balance depreciation rate of 20%, as does the electric model from this time on. The MARRI is 8%. Operating costs for the electric model are $20 000 over the first year, rising by 12% per year. Operating costs for the propane model will initially be $10 000 over the first year, rising by 12% per year. Should the company replace the forklifts now? Problem 3 (25%) A company purchased new electric forklifts two years ago. They cost $75 000 each, including a charging stand. In practice, it was found that they did not hold their charge as long as claimed by the manufacturer, so operating costs are very high. As a result, their current salvage value is $10 000. The company is considering replacing them with propane models. New propane forklifts cost $58 000 each. After one year, they have a salvage value of $40 000, and thereafter decline in value at a declining balance depreciation rate of 20%, as does the electric model from this time on. The MARRI is 8%. Operating costs for the electric model are $20 000 over the first year, rising by 12% per year. Operating costs for the propane model will initially be $10 000 over the first year, rising by 12% per year. Should the company replace the forklifts now