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)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 2E
icon
Related questions
Question

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)

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Economics: Applications, Strategies an…
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Microeconomic Theory
Microeconomic Theory
Economics
ISBN:
9781337517942
Author:
NICHOLSON
Publisher:
Cengage
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours…
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning