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.
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