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2.13 Pushem Down clearing contractors purchases a dozer with a delivered price of $470,000. The company believes it can sell the used dozer after 4 years (1,800 hr/yr) of service for $75,000. There will be no major overhauls. The companys cost of capital is 8.3%, and its tax rate is 35%. Property taxes, insurance, and storage will run 5%, what is the owning cost for the dozer? Use the time value method to calculate the depreciation portion of the ownership cost. ($58.078/hr)
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