Question

CET 470 Infrastructure, Heavy Highway and Equipment Spring 2019 m 2.9 on p. 58) A track dozer cost $235,000 to purchase. FOG and minor 2. (Modified Proble maintenance are estimated at $42.00 per operating hr. A major engine repair $28,000 will be required after 9,000 hrs of use. The expected resale price (salvage value 25% of the original purchase price. The machine should last 12,000 hrs. How much should the owner of the machine charge per hour of use, if it is expected that the machine will operate 1,500 hours per year? The company's cost of capital rate is costing 7%, (30 Points)

Answer 1