2.7 A machine cost $315000 to purchase . Fuel , oil, grease and minor maintenance are estimated to cost $53.50 per operating hours. A set of tires cost $16000 to replace and their estimated life is 3100 user hours. A $ 17000 major repair will probably be required after 6200 hr of use. The machine is expected to lat for 9300 hr. after which it will be sold at a price (salvage value ) equal to 13% of the original prurchae price . A final the owner of the machine charger per hours of use, if it is expected that the machine will operated 3100 per year ? the compnay's cost -of -capital rate is 7.25%.
2.7 A machine cost $315000 to purchase . Fuel , oil, grease and minor maintenance are estimated to cost $53.50 per operating hours. A set of tires cost $16000 to replace and their estimated life is 3100 user hours. A $ 17000 major repair will probably be required after 6200 hr of use. The machine is expected to lat for 9300 hr. after which it will be sold at a price (salvage value ) equal to 13% of the original prurchae price . A final the owner of the machine charger per hours of use, if it is expected that the machine will operated 3100 per year ? the compnay's cost -of -capital rate is 7.25%.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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2.7 A machine cost $315000 to purchase . Fuel , oil, grease and minor maintenance are estimated to cost $53.50 per operating hours. A set of tires cost $16000 to replace and their estimated life is 3100 user hours.
A $ 17000 major repair will probably be required after 6200 hr of use. The machine is expected to lat for 9300 hr. after which it will be sold at a
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