Recents Screen Screen Screen Shot 2021-09-19 at 7.05.15 PM Open with Preview A forklift will last for only 2 more years. It costs $5,300 a year to maintain. For $23,000 you can buy a new lift that can last for 10 years and should require maintenance costs of only $2,300 a year. a-1. Calculate the equivalent cost of owning and operating the forklift if the discount rate is 5% per year. (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 14% per year. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b-2. Should you replace the forklift? Answer is complete but not entirely correct. $ 5,278.61 No 1. a- 2. b- 1. b- 2. Equivalent cost Should you replace the forklift? Equivalent cost Should you replace the forklift? $ 6,043.14 Yes 3 Screen Shot Screen Shot 2021-09...7.25 AM 2021-09...2.58 PM 8 Consider the following projects: 10 points Project -$2,300 B - 2,300 Ci +$2,200 + 1,640 +$1,400 + 1,768 a. Calculate the profitability index for A and B assuming a 25% opportunity cost of capital. (Do calculations. Round your answers to 4 decimal places.) Answer is complete but not entirely correct. Project Profitability Index 1.1500 A B 1.0600 b. According to the profitability index rule, which project(s) should you accept? Project A Project B