Problem 8-38 Replacement Decision (LO5) A forklift will last for only 2 more years. It costs $6,300 a year to maintain. For $18,000 you can buy a new lift that can last for 9 years and should require maintenance costs of only $3,300 a year. a-1. Calculate the equivalent cost of owning and operating the forklift if the discount rate is 4% per year. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. a-2. Should you replace the forklift? b-1. Calculate the equivalent cost of owning and operating the forklift if the discount rate is 12% per year. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b-2. Should you replace the forklift? a-1. Equivalent cost a-2. Should you replace the forklift? b-1. Equivalent cost b-2. Should you replace the forklift?

A forklift will last for only 2 more years. It costs $6,300 a year to maintain. For $18,000 you can buy a new lift that can last for 9 years and should require maintenance costs of only $3,300 a year. a-1. Calculate the equivalent cost of owning and operating the forklift if the discount rate is 4% per year. Note: Do not round intermediote colculations. Round your answer to 2 decimal places. a-2. Should you replace the forklift? b-1. Calculate the equivalent cost of owning and operating the forklift if the discount rate is 12% per year. Note: Do not round intermediate calculations. Round your onswer to 2 decimal places. b-2. Should you replace the forklift