Gas powered or electric powered forklift truck

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Reference no: EM13731344

Company must choose between a gas powered or electric powered forklift truck. Electric truck will cost more but less expensive to operate its price is $21,000 the gas powered is $17,960. Cost of capital applied to both at 13%. Life expectancy for both trucks estimated at six years, during time net cash flow will be $6,860 per year for electric truck and $4,600 per year for gas truck. Annual net includes depreciation expenses. Need NPV for each truck and IRR. What truck should they purchase?

Reference no: EM13731344

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