manufacturer moves pallets of materials with a forklift truck. He has consistently used the same make and model of orklift over the past several years. The purchase price has been relatively constant at $8,000 each. Records of peration and maintenance indicate these average expenses per year as a function of age of the vehicle. The =alvage (market) values of the forklift are also reasonably well known as a function of age. Find the best time to replace a forklift truck when the MARR = 13% per year. Click the icon to view the average expenses per year. Click the icon to view the salvage (market) values of the forklift. Click the icon to view the interest and annuity table for discrete compounding when MARR = 13% per year. Fill the table below. (Round to the nearest dollar.) Year 1 2345 ... EUAC $ $ $ $ $

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Question

Average expense operating expense year

one 4000 year

year 2 (4000)

3(4500) year

three 4 5000

year  5 5500

slavage Value 

year 1 (6000)

2 (5000)

3 (4000)

4( 2500)

5(1250)

A manufacturer moves pallets of materials with a forklift truck. He has consistently used the same make and model of
Forklift over the past several years. The purchase price has been relatively constant at $8,000 each. Records of
operation and maintenance indicate these average expenses per year as a function of age of the vehicle. The
salvage (market) values of the forklift are also reasonably well known as a function of age. Find the best time to replace
a forklift truck when the MARR = 13% per year.
+
Click the icon to view the average expenses per year.
Click the icon to view the salvage (market) values of the forklift.
Click the icon to view the interest and annuity table for discrete compounding when MARR = 13% per year.
Fill the table below. (Round to the nearest dollar.)
Year
1
2
3
4
LO
5
EUAC
$
$
SA
$
S
Transcribed Image Text:A manufacturer moves pallets of materials with a forklift truck. He has consistently used the same make and model of Forklift over the past several years. The purchase price has been relatively constant at $8,000 each. Records of operation and maintenance indicate these average expenses per year as a function of age of the vehicle. The salvage (market) values of the forklift are also reasonably well known as a function of age. Find the best time to replace a forklift truck when the MARR = 13% per year. + Click the icon to view the average expenses per year. Click the icon to view the salvage (market) values of the forklift. Click the icon to view the interest and annuity table for discrete compounding when MARR = 13% per year. Fill the table below. (Round to the nearest dollar.) Year 1 2 3 4 LO 5 EUAC $ $ SA $ S
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