A track dozer cost $163,000 to purchase. Fuel, oil, grease, and minor maintenance are estimated to cost $32.14 per operating hour. A major engine repair costing $12,000 will probably be required after 7,200 hr of use. The expected resale price (salvage value) is 21 % of the original purchase price. The machine should last 10,800 hr. How much should the owner of the machine charge per hour of use, if it is expected that the machine will operate 1,800 hr per year? The company's cost of capital rate is 7.3%.

Answer rating: 100% (QA)

Calculation 14071 163000 12000 10800 7200 The original purchase price is 16300... View the full answer