Question: A track dozer cost $ 4 5 0 , 0 0 0 to purchase. Fuel, Oil, Grease, and minor maintenance are estimated to cost $

A track dozer cost $450,000 to purchase. Fuel, Oil, Grease, and minor
maintenance are estimated to cost $55 per operating hour. A major engine
repair costing $30,000 will probably be required after 8,100 hours of use. The
expected resale price (salvage value) is $40,000. The machine is expected to
have a useful life of 12,500 hours. The companys MARR is 5.5%. How much
should the owner of the machine charge per hour of use, if it is expected that
the machine will operate 2,500 hours per year?

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