Your contracting business is purchasing a scraper for $900,000. The tires for the machine cost $50,000...
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Your contracting business is purchasing a scraper for $900,000. The tires for the machine cost $50,000 and you expect to keep the scraper for 5 years, after which you expect to sell it for $300,000. You anticipate that you will use the scraper 1,500 hours per year and your company has a cost of capital of 8%. Assuming no major repairs or overhauls, what is the Cost of Capital per Hour for the Scraper? Your contracting business is purchasing a scraper for $900,000. The tires for the machine cost $50,000 and you expect to keep the scraper for 5 years, after which you expect to sell it for $300,000. You anticipate that you will use the scraper 1,500 hours per year and your company has a cost of capital of 8%. Assuming no major repairs or overhauls, what is the Cost of Capital per Hour for the Scraper?
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Answer rating: 100% (QA)
To calculate the Cost of Capital per Hour for the scraper you can use the concept of present value The cost of capital represents the opportunity cost ... View the full answer
Related Book For
Data Analysis and Decision Making
ISBN: 978-0538476126
4th edition
Authors: Christian Albright, Wayne Winston, Christopher Zappe
Posted Date:
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