In year 3 it jumps to 750 and increases 200 per year


A 2000-pound, counterbalanced, propane forklift can be purchased for $30,000. Due to the intended service use, the forklift's market value drops 20% of its prior year's value in Years 1 and 2 and then declines by 15% until Year 10 when it will have a scrap/market value of $1000. Maintenance of the forklift is $400 per year during Years 1 and 2 while the warranty is in place. In Year 3 it jumps to $750 and increases $200 per year thereafter. What is the optimal life of the forklift?

Request for Solution File

Ask an Expert for Answer!!
Business Economics: In year 3 it jumps to 750 and increases 200 per year
Reference No:- TGS02606011

Expected delivery within 24 Hours