Compute the equivalent cost of owning and operating

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Reference no: EM1371085

Fforklift will last for only 2 more years. It costs $5,600 a year to maintain. For $22,000 you can buy a new lift that can last for 10 years and should require maintenance costs of only $2,600 a year.

a) Calculate the equivalent cost of owning and operating if the discount rate is 5% per year?

b) Calculate the equivalent cost of owning and operating if the discount rate is 15% per year?

Reference no: EM1371085

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