Question: 4. For the machine described in Problem 3 what is the depreciation part of machine ownership cost? Use the AAI method of calculation. (30 Pts)

4. For the machine described in Problem 3 what is the depreciation part of machine ownership cost? Use the AAI method of calculation. (30 Pts) 3. Asphalt Pavers, Inc., purchases a loader to use at its asphalt plant. The purchase price delivered is $235,000. Tires for this machine cost $24,000. The company believes it can sell the loader after 7 yr (3,000 hr/yr) of service for $79,000. There will be no major overhauls. The company's cost of capital is 6.3%. What is the hourly depreciation part of this machine's ownership cost? Use the time value method to calculate depreciation. (30 Pts) 4. For the machine described in Problem 3 what is the depreciation part of machine ownership cost? Use the AAI method of calculation. (30 Pts) 4. For the machine described in Problem 3 what is the depreciation part of machine ownership cost? Use the AAI method of calculation. (30 Pts) 3. Asphalt Pavers, Inc., purchases a loader to use at its asphalt plant. The purchase price delivered is $235,000. Tires for this machine cost $24,000. The company believes it can sell the loader after 7 yr (3,000 hr/yr) of service for $79,000. There will be no major overhauls. The company's cost of capital is 6.3%. What is the hourly depreciation part of this machine's ownership cost? Use the time value method to calculate depreciation. (30 Pts) 4. For the machine described in Problem 3 what is the depreciation part of machine ownership cost? Use the AAI method of calculation. (30 Pts)

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