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)
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
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2.11 Asphalt Pavers,Inc, Purchases a loader to use at its asphalt plant. The Purchase
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