Big W Construction purchases a dump truck to use for its upcoming projects. The purchase price delivered is $278,000. Tires for this machine cost $20,000. The company believes it can sell the loader after 7 years (2,500 hr/yr) of service for $62,000. There will be no major overhauls. The company's cost-of-capital is 7.1%. Using the time value method to calculate depreciation and deducting the tire cost from the ownership cost, find the following: Equivalent uniform period series (USCRF) [ Choose ] required to replace the initial ownership cost ($) Equivalent uniform end-of-period investments (USSFF) that equal the future [ Choose ] salvage value ($) Depreciation ($/hr) [ Choose ]
Big W Construction purchases a dump truck to use for its upcoming projects. The purchase price delivered is $278,000. Tires for this machine cost $20,000. The company believes it can sell the loader after 7 years (2,500 hr/yr) of service for $62,000. There will be no major overhauls. The company's cost-of-capital is 7.1%. Using the time value method to calculate depreciation and deducting the tire cost from the ownership cost, find the following: Equivalent uniform period series (USCRF) [ Choose ] required to replace the initial ownership cost ($) Equivalent uniform end-of-period investments (USSFF) that equal the future [ Choose ] salvage value ($) Depreciation ($/hr) [ Choose ]
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Big W Construction purchases a dump truck to use for its upcoming projects. The purchase price
delivered is $278,000. Tires for this machine cost $20,000. The company believes it can sell the
loader after 7 years (2,500 hr/yr) of service for $62,000. There will be no major overhauls. The
company's cost-of-capital is 7.1%. Using the time value method to calculate depreciation and
deducting the tire cost from the ownership cost, find the following:
Equivalent uniform period series (USCRF)
[ Choose ]
required to replace the initial ownership cost
($)
Equivalent uniform end-of-period
investments (USSFF) that equal the future
salvage value ($)
[ Choose ]
Depreciation ($/hr)
[ Choose ]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff5c1890b-1118-4858-a4e9-7a700f3df2fd%2Fa73c8f60-a32b-405f-a532-4ff9f8ffce63%2Fn367knv_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Big W Construction purchases a dump truck to use for its upcoming projects. The purchase price
delivered is $278,000. Tires for this machine cost $20,000. The company believes it can sell the
loader after 7 years (2,500 hr/yr) of service for $62,000. There will be no major overhauls. The
company's cost-of-capital is 7.1%. Using the time value method to calculate depreciation and
deducting the tire cost from the ownership cost, find the following:
Equivalent uniform period series (USCRF)
[ Choose ]
required to replace the initial ownership cost
($)
Equivalent uniform end-of-period
investments (USSFF) that equal the future
salvage value ($)
[ Choose ]
Depreciation ($/hr)
[ Choose ]
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