Question

Question 5 0.2 pts Caston Construction just purchased a new forklift for $81552. Annual expenses are estimated to be $11375. Caston will perform a minor overhaul on the forklift every three years at a cost of $13644 and an extensive overhaul at the end of year 6 for $29861. At the end of its useful life in 12 years, the forklift will be sold for $12149. What is the first cost for the forklift? Enter your answer as: 1234. Do not use a dollar sign ("$"), any commas ("") or decimal point (". a Question 6 0.2 pts Solstice & Sons began production on a new product line. The manufacturing equipment was $591091. Annual costs are expected to be $56713 and annual revenues will be $255896.The company anticipates it will need to pay upgrade fees of $44191 every other year. The company expects to manufacture for 10 years, at which time it will sell the equipment for $115778. What is the salvage value of the manufacturing equipment? Enter your answer as: 1234. Do not use a dollar sign ("$"), any commas ("") or a decimal point ("")

Answer 1

(Question 5)

First cost = Purchase price of the forklift = $81552

(Question 6)

Salvage value = Amount received from selling the equipment after 10 years = $115778