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urchase. They have narrowed 1. Your company is deciding which brand of forklift to purchase. their options to two brands-the Alpha or the Mighty. The

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urchase. They have narrowed 1. Your company is deciding which brand of forklift to purchase. their options to two brands-the Alpha or the Mighty. The Alpha sells for $50,000. The annual operating costs are exp per year. At the end of 5 years the seller will buy back the used The Mighty sells for $60,000. The annual operating costs are expo, per year. At the end of 7 years the seller will buy back the used Assume expenses occur at the beginning of the year. Time Diagram Requ. (a) If the interest rate is 10% effective which forklift should the company cho (12 marks] sts are expected to be $6,000 back the used forklift for $10,000. are expected to be $6,400 back the used forklift for $16,000. ar. Time Diagram Required he company choose

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