Pushem down clearing contractors purchases a dozer with delivered price of $470000. The company believes it can sell the used dozer after 4 years (1800 hr/yr) of service for $ 75ooo. There will be no major overhauls. The company's cost of capital is 8.3%, and its tax rate is 35 %, Prpperty taxes. Insurance , and storage will run 5%. what is the owning cost for the dozer? Use the time value method to calculate the deprciation portion of the owner ship cost. ( $ 58.078/hr
Pushem down clearing contractors purchases a dozer with delivered price of $470000. The company believes it can sell the used dozer after 4 years (1800 hr/yr) of service for $ 75ooo. There will be no major overhauls. The company's cost of capital is 8.3%, and its tax rate is 35 %, Prpperty taxes. Insurance , and storage will run 5%. what is the owning cost for the dozer? Use the time value method to calculate the deprciation portion of the owner ship cost. ( $ 58.078/hr
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Pushem down clearing contractors purchases a dozer with delivered price of $470000. The company believes it can sell the used dozer after 4 years (1800 hr/yr) of service for $ 75ooo. There will be no major overhauls. The company's cost of capital is 8.3%, and its tax rate is 35 %, Prpperty taxes. Insurance , and storage will run 5%. what is the owning cost for the dozer? Use the time value method to calculate the deprciation portion of the owner ship cost. ( $ 58.078/hr
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