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Tthank you! An old forklift is due for a replacement analysis. It has a current market value $10,000. The market values and operation and maintenance
Tthank you!
An old forklift is due for a replacement analysis. It has a current market value $10,000. The market values and operation and maintenance costs for each of the remaining years of service are given below. The MARR is 14% per year. (a) Complete the table of marginal costs of the old forklift for each of the remaining years of service. (b) If the challenger has a minimum EUAC of $6,021, answer the two additional questions. Year 1 2 3 4 Forklift (Defender) MV at EOY O&M Costs $7,000 $3.000 6,000 3,000 4,500 3,500 2,500 4,500 Click the icon to view the interest and annuity table for discrete compounding when MARR = 14% per year. Fill in the table below. (Round to the nearest dollar.) Year 1 Marginal Cost $ $ $ 2 3 4 Click to select your answer(s) and then click Check Answer. ? N 1 2 3 4 5 6 7 8 9 10 Discrete Compounding; i = 14% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F F/P P/F FIA P/A A/F 1.1400 0.8772 1.0000 0.8772 1.0000 1.2996 0.7695 2.1400 1.6467 0.4673 1.4815 0.6750 3.4396 2.3216 0.2907 1.6890 0.5921 4.9211 2.9137 0.2032 1.9254 0.5194 6.6101 3.4331 0.1513 2. 1950 0.4556 8.5355 3.8887 0.1172 2.5023 0.3996 10.7305 4.2883 0.0932 2.8526 0.3506 13.2328 4.6389 0.0756 3.2519 0.3075 16.0853 4.9464 0.0622 3.7072 0.2697 19.3373 5.2161 0.0517 Capital Recovery Factor To Find A Given P A/P 1.1400 0.6073 0.4307 0.3432 0.2913 0.2572 0.2332 0.2156 0.2022 0.1917 (b) Since Analysis Technique No 2 is applicable here (make sure you know why, Example 5 Module 10), which additional calculation is required before the replacement decision can be made? O A. The minimum EUAC of the defender over its remaining life OB. The minimum marginal cost of the challenger Then, the decision will be made to replace the defender if Then, the decision will be made to replace the defender if O A. The minimum EUAC of the defender is lower than the minimum EUAC of the challenger O B. The minimum marginal cost of the challenger is higher than the first year marginal cost of the defender OC. The minimum EUAC of the defender is higher than the minimum EUAC of the challenger An old forklift is due for a replacement analysis. It has a current market value $10,000. The market values and operation and maintenance costs for each of the remaining years of service are given below. The MARR is 14% per year. (a) Complete the table of marginal costs of the old forklift for each of the remaining years of service. (b) If the challenger has a minimum EUAC of $6,021, answer the two additional questions. Year 1 2 3 4 Forklift (Defender) MV at EOY O&M Costs $7,000 $3.000 6,000 3,000 4,500 3,500 2,500 4,500 Click the icon to view the interest and annuity table for discrete compounding when MARR = 14% per year. Fill in the table below. (Round to the nearest dollar.) Year 1 Marginal Cost $ $ $ 2 3 4 Click to select your answer(s) and then click Check Answer. ? N 1 2 3 4 5 6 7 8 9 10 Discrete Compounding; i = 14% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F F/P P/F FIA P/A A/F 1.1400 0.8772 1.0000 0.8772 1.0000 1.2996 0.7695 2.1400 1.6467 0.4673 1.4815 0.6750 3.4396 2.3216 0.2907 1.6890 0.5921 4.9211 2.9137 0.2032 1.9254 0.5194 6.6101 3.4331 0.1513 2. 1950 0.4556 8.5355 3.8887 0.1172 2.5023 0.3996 10.7305 4.2883 0.0932 2.8526 0.3506 13.2328 4.6389 0.0756 3.2519 0.3075 16.0853 4.9464 0.0622 3.7072 0.2697 19.3373 5.2161 0.0517 Capital Recovery Factor To Find A Given P A/P 1.1400 0.6073 0.4307 0.3432 0.2913 0.2572 0.2332 0.2156 0.2022 0.1917 (b) Since Analysis Technique No 2 is applicable here (make sure you know why, Example 5 Module 10), which additional calculation is required before the replacement decision can be made? O A. The minimum EUAC of the defender over its remaining life OB. The minimum marginal cost of the challenger Then, the decision will be made to replace the defender if Then, the decision will be made to replace the defender if O A. The minimum EUAC of the defender is lower than the minimum EUAC of the challenger O B. The minimum marginal cost of the challenger is higher than the first year marginal cost of the defender OC. The minimum EUAC of the defender is higher than the minimum EUAC of the challengerStep by Step Solution
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