Question

Infrastructure, highway, equipment

QUESTION 1 A contractor has purchased a tractor for $180,000 and expect to use t for 6.000 hours (1,200 hours per yean, The salvage value after the useful years estimated to be $35.000. A single major maintenance for this tractor is expected at the end of 3rd year and it will cost $10.000. What is the hourly cost of the tractor? Assume an interest rate of 7%. Please provide your solution for the partial credit if your given answer is not exactly matched with the correct answer, you cannot get any points. (use two decimal nla

Answer 1

Er, pected use of tracter = 6000 hrs 1200 aivage value of tructor 3S, o oo maintenance at end of 3y ซ= 10,000 a,こ3 180,000 (A, p ,i ,n) .f 18.0,000( Are, 7%, S) --$ 180,000 X 0.2438 3834 6o83 い0,000 et 10000( 0-11-3 ) J Lo,2h36] 1200