Company must choose between a gas powered or electric


Company must choose between a gas powered or electric powered forklift truck. Electric truck will cost more but less expensive to operate its price is $21,000 the gas powered is $17,960. Cost of capital applied to both at 13%. Life expectancy for both trucks estimated at six years, during time net cash flow will be $6,860 per year for electric truck and $4,600 per year for gas truck. Annual net includes depreciation expenses. Need NPV for each truck and IRR. What truck should they purchase?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Company must choose between a gas powered or electric
Reference No:- TGS0984564

Expected delivery within 24 Hours