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Your company buys a piece of equipment for a cost of $225K including tires. Freight costs are $4K. Tire replacement costs $25K and lasts for 4000 hrs. The equipment has a total life of 10,000 hours and the plan is to use it 1000 hours per year. Fuel costs $2.35 per gallon and equipment usage is 5 galhr. The equipment will be used for 5 years and sold for $100K Company overhead and interest is 20%. Determine the total Ownership and operating cost. Select the right option with explanationbas options are: - 80$ - 81$ -82$ -83$ -84$ -85$ -86$ -87$ -88$ -89$ -90$

Your company buys a piece of equipment for a cost of $225K including tires. Freight costs are $4K. Tire replacement costs $25K and lasts for 4000 hrs. The equipment has a total life of 10,000 hours and the plan is to use it 1000 hours per year. Fuel costs $2.35 per gallon and equipment usage is 5 galhr. The equipment will be used for 5 years and sold for $100K Company overhead and interest is 20%. Determine the total Ownership and operating cost. Select the right option with explanationbas options are: - 80$ - 81$ -82$ -83$ -84$ -85$ -86$ -87$ -88$ -89$ -90$

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Your company buys a piece of equipment for a cost of $225K including tires. Freight costs are $4K. Tire replacement costs $25K and lasts for 4000 hrs. The equipment has a total life of 10,000 hours and the plan is to use it 1000 hours per year. Fuel costs $2.35 per gallon and equipment usage is 5 galhr. The equipment will be used for 5 years and sold for $100K Company overhead and interest is 20%. Determine the total Ownership and operating cost.

Select the right option with explanationbas options are:

- 80$

- 81$

-82$

-83$

-84$

-85$

-86$

-87$

-88$

-89$

-90$

 

 

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