Question: A contractor is considering purchasing a used tractor for $150,000 that she could use for 10 years and then sell for an estimated salvage value

A contractor is considering purchasing a used tractor for $150,000 that she could use for 10 years and then sell for an estimated salvage value of $5,000. Annual maintenance and repair costs for the used tractor are estimated to be $10,000 per year. As an alternative, the contractor could rent a similar tractor for $3,000 per month or $36,000 per year. How much does it cost annually to buy the equipment at 10% interest? Use the time value calculator provided. Round all answers to two decimal places.

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