Problem

Pushem Down clearing contractors purchases a dozer with a delivered price of $275,000. The...

Pushem Down clearing contractors purchases a dozer with a delivered price of $275,000. The company believes it can sell the used dozer after 4 years (2,000 hours/yr) of service for $56,000. There will be no major overhauls. The company’s cost-of-capital is 9.2% and its tax rate is 33%. Property taxes, insurance and storage will run 4%. What is the owning cost for the dozer? Use the time value method to calculate the depreciation portion of the ownership cost. ($40.379/hr)

Step-by-Step Solution

Request Professional Solution

Request Solution!

We need at least 10 more requests to produce the solution.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)


All students who have requested the solution will be notified once they are available.
Add your Solution
Textbook Solutions and Answers Search
Solutions For Problems in Chapter 12