Question 13 (1 point)

Consider the following information for an industrial forklift. It has a current trade-in value of $7000 however if kept it requires an immediate overhaul costing $500. The operating and maintenance costs are $2000 in the first year and they are expected to increase by $2000 per year thereafter. The machine has a maximum lifespan of 6 years from today. The resale value of the machine will fall by 50% each year from its previous years resale price. What is the AEC of the machine at its economic service life? Assume the firm has a MARR of 11%. The AEC is within $20 of?

Question 13 options:

A	6338
B	6378
C	6418
D	6458
E	6498
F	None of the above