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# Fifteen years ago the Acme ManufacturingCompany bought a

ISBN: 9780199339273 93

## Solution for problem 13-50 Chapter 13

Engineering Economic Analysis | 12th Edition

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Engineering Economic Analysis | 12th Edition

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Problem 13-50

Fifteen years ago the Acme ManufacturingCompany bought a propane-powered forklift truckfor \$4800. The company depreciated the forkliftusing straight-line depreciation, a 12-year life, andzero salvage value. Over the years, the forklift hasbeen a good piece of equipment, but lately themaintenance cost has risen sharply. Estimated end-of-year maintenance costs for the next 10 years areas follows:Year Maintenance Cost1 \$ 4002600380041000510 1400/yearThe old forklift has no present or future netsalvage value, since its scrap metal value just equalsthe cost to haul it away.A replacementis now beingconsideredfor the old forklift. A modern unit can bepurchased for \$6500. It has an economic life equalto its 10-year depreciable life. Straight-line depre-ciation will be employed,with zero salvage value atthe end of the 10-year depreciable life. At any time the new forklift can be sold for its book value.Main-tenance on the new forklift is estimated to be a con-stant \$50 per year for the next 10 years, after whichmaintenanceis expected to increase sharply.ShouldAcme Manufacturing keep its old forklift truck forthe present, or replace it now with a new one? Thefirm expects an 8% after-tax rate of return on itsinvestments. Assume a 40% combined state-and-federal tax rate.

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Week 7 LIFE 102 Notes 2/26/16, Module 8 cont.  Glycolysis: Sugar splitting, small amount of ATP is made and glucose is oxidized (loss of electrons)  Reduction is the gain of electron, cannot have reduction without oxidation.  Before the citric acid cycle can begin: o Pyrubate must be converted to acetyl Coenzyme A (Acetyl CoA), which links glycolysis to the citric acid cycle.  Major point of digesting food is to steal electrons and those electrons are used to pump hydrogen ions across a membrane 

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