A track dozer costs $240,000 to purchase.

You plan to use it for 5 years, and each year you expect to use it for 1,800 hours.

You expect to sell it at the end of five years (before any major repairs are required) for $80,000.

Your company's cost of capital rate is 10%.

Using the Time Value Method, what is the depreciation portion of ownership cost of this track dozer per hour of use?

Answer rating: 100% (QA)

To calculate the depreciation portion of the ownership cost of the track dozer per hour of use we ne... View the full answer