A dozer costs $145,000 to purchase and has a useful life of 6 years with a salvage value of $15,000. Assume that MARR is 11%. How much should the company charge per hour to recover the cost of the investment if the dozer will operate 1,200 hours/year.

A dozer costs $145,000 to purchase and has a useful life of 6 years with a salvage value of $15,000. Assume that MARR is 11%. How much should the company charge per hour to recover the cost of the investment if the dozer will operate 1,200 hours/year.

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Description: A dozer costs $145,000 to purchase and has a useful life of 6 years with a salvagevalue of $15,000. Assume that MARR is 11%. How much should the company chargeper hour to recover the cost of the investment if the dozer will operate 1,200hours/year.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 3P

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