What is the hourly rate of equipment based on the following data? Purchase price (P) = $460,000 %3D Salvage value (F) = $40,000 Useful life (N) = 10 years %3D Working hours per year = 2000 Hours Annual maintenance costs = 10% of purchase price Annual operating costs = $47,000 Interest rate (i) = 15%

What is the hourly rate of equipment based on the following data? Purchase price (P) = $460,000 %3D Salvage value (F) = $40,000 Useful life (N) = 10 years %3D Working hours per year = 2000 Hours Annual maintenance costs = 10% of purchase price Annual operating costs = $47,000 Interest rate (i) = 15%

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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