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A forklift will last for only 3 more years. It costs $5,400 a year to...

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Finance

A forklift will last for only 3 more years. It costs $5,400 a year to maintain. For $24,000 you can buy a new lift that can last for 12 years and should require maintenance costs of only $2,400 a year.

a-1. Calculate the equivalent cost of owning and operating the forklift if the discount rate is 6% per year. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

a-2. Should you replace the forklift?

b-1. Calculate the equivalent cost of owning and operating the forklift if the discount rate is 15% per year. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b-2. Should you replace the forklift?

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