... increasing over the next five year period Thus the Replacement Decision Analysis Map would suggest that we use Replacement Analysis Technique #1 We compare the defender marginal cost data against... problem says the challenger economic life is 10 years (Using the data provided this fact could be verified, but that is not part of the problem.) Annual Cash-Flow Analysis: Keep Old Forklift... = -$4,800 (P/A, 10%, 7) = -$4,800 (4.868) = -$23,366 Choose the solution that maximizes NPW Choose Alternative C Rate of Return Solution Alternative A rather than Alternative E (Do nothing) Year