Universal Farm Supply's management has observed that it can sell as much fertilizer as it can stock and is carnidering the possibility of purchasing a forlilt and expanding its warehouse space in order to be able to handle and stock more ferilizer $($both are necessary to expand sales$).$ The forklift costs $$42,000$ and would be depreclated to a salvage value of zero in $7$ years, even though in is expected to last for $10$ years. The warehouse expansion world cost $$100,000$ and would be depredated to a salvage value of $$60,000$ in $10$ years. The expansion would allow Universal to sell $1,000,000$ more pounds per year at $$0\mathrm{.}20$ per pound $($the fertilizer actually costs Universal $$0\mathrm{.}17$ per pound to manufacture$).$ Universal's marginal tax rate is $25\%$ and its required rate of return is $12\%.$

Assume the firm uses straightine depredation.

$\backslash$table$[[,$Forklif,Warehouse$],[],[$Cost$,$$$,42,000\mathrm{.}00,$$$100,000\mathrm{.}00$