You have just bought a new pusher dozer for your equipment fleet. Its cost is $100,000. It
Question:
You have just bought a new pusher dozer for your equipment fleet. Its cost is $100,000. It has an estimated service life of four years. Its salvage value is $12,000.
a. Calculate the depreciation for the first and second year using the straight-line and DDB methods.
b. The IIT components of ownership cost based on average annual value are:
Tax: 2%
Insurance: 2%
Interest: 7%
What cost per hour of operation would you charge to cover IIT?
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ANSWER a Lets start by calculating the depreciation for the first and second years using both the st...View the full answer
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Related Book For 
Construction Management
ISBN: 9781119256809
5th Edition
Authors: Daniel W. Halpin, Bolivar A. Senior, Gunnar Lucko
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