The Advantgard Company plans to make a green investment in its forklift truck fleet. A hydrogen fuel-cell powered forklift will do the work of three battery-pack forklifts because of the time required to recharge the batteries. If the MARR is 20% per year, which type of forklift should be recommended? Use the IRR method. The salvage values of both types of trucks are negligible.

Hint: there are two alternatives with different useful lives. The method is the IRR. Equate the AW of each alternative over its own useful life and solve for i. Depending upon the value of i, select the best alternative!

\begin{tabular}{l|l|l} & \multicolumn{1}{|c|}{ Battery (three trucks) } & Hydrogen (one truck) \\ \hline Initial investment & $250,000 & $400,000 \\ \hline Cost of operation & $60,000 per year & $30,000 per year \\ \hline Useful life & 6 years & 8 years \end{tabular} \begin{tabular}{l|l|l} & \multicolumn{1}{|c|}{ Battery (three trucks) } & Hydrogen (one truck) \\ \hline Initial investment & $250,000 & $400,000 \\ \hline Cost of operation & $60,000 per year & $30,000 per year \\ \hline Useful life & 6 years & 8 years \end{tabular}