2.11 Asphalt Pavers,Inc, Purchases a loader to use at its asphalt plant. The Purchase price delivered is $326000. Tires for this machine cost $26000. The company believes it can sell the loader after 6 years (2800 hr/ yr ) of service for $ 75000. There will be no major overhauls. The compny's cost- of - capital is 6.31%. What is the depreciation part of this machines's ownership cost ? Use the time value method to calculate deprecition. ($18.191/ hr)

2.11 Asphalt Pavers,Inc, Purchases a loader to use at its asphalt plant. The Purchase price delivered is $326000. Tires for this machine cost $26000. The company believes it can sell the loader after 6 years (2800 hr/ yr ) of service for $ 75000. There will be no major overhauls. The compny's cost- of - capital is 6.31%. What is the depreciation part of this machines's ownership cost ? Use the time value method to calculate deprecition. ($18.191/ hr)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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MARR QUESTION
D1.
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