A track dozer costs $240,000 to purchase.You plan to use it for 5 years, and each year you expect to use it for 1,800 hours.You expect to sell it at the end of five years (before any major repairs are required) for $75,000.Your company's cost of capital rate is 10%.Using the Time Value Method, what is the depreciation portion of ownership cost of this track dozer per hour of use?

A track dozer costs $240,000 to purchase.You plan to use it for 5 years, and each year you expect to use it for 1,800 hours.You expect to sell it at the end of five years (before any major repairs are required) for $75,000.Your company's cost of capital rate is 10%.Using the Time Value Method, what is the depreciation portion of ownership cost of this track dozer per hour of use?

Fundamentals Of Construction Estimating

4th Edition

ISBN:9781337399395

Author:Pratt, David J.

Publisher:Pratt, David J.

Chapter9: Pricing Construction Equipment

Section: Chapter Questions

Problem 6RQ

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