Q)land development company is considering the purchase of earth-moving equipment. This equipment will have an estimated first cost of $163,000, a salvage value of $65,000, a life of 10 years, a maintenance cost of $40,000 per year, and an operating cost of $420 per day. Alternatively, the company can rent the necessary equipment for $1030 per day and hire a driver at $180 per day. If the company’s MARR is 15% per year, how many days per year must the company need the equipment in order to justify its purchase? The company must need the equipment ____ days per year in order to justify its purchase.
Q)land development company is considering the purchase of earth-moving equipment. This equipment will have an estimated first cost of $163,000, a salvage value of $65,000, a life of 10 years, a maintenance cost of $40,000 per year, and an operating cost of $420 per day. Alternatively, the company can rent the necessary equipment for $1030 per day and hire a driver at $180 per day. If the company’s MARR is 15% per year, how many days per year must the company need the equipment in order to justify its purchase? The company must need the equipment ____ days per year in order to justify its purchase.
Elements Of Electromagnetics
7th Edition
ISBN:9780190698614
Author:Sadiku, Matthew N. O.
Publisher:Sadiku, Matthew N. O.
ChapterMA: Math Assessment
Section: Chapter Questions
Problem 1.1MA
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Q)land development company is considering the purchase of earth-moving equipment. This equipment will have an estimated first cost of $163,000, a salvage value of $65,000, a life of 10 years, a maintenance cost of $40,000 per year, and an operating cost of $420 per day. Alternatively, the company can rent the necessary equipment for $1030 per day and hire a driver at $180 per day.
If the company’s MARR is 15% per year, how many days per year must the company need the equipment in order to justify its purchase?
The company must need the equipment ____ days per year in order to justify its purchase.
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