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

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

Chapter14: Pricing Techniques And Analysis

Section: Chapter Questions

Problem 1.1CE: What life cycle cost concept begins raising concerns by year 5 with any electric vehicle (EV)? If...

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