Asphalt Pavers, Inc. purchases a loader to use at its asphalt plant. The purchase price delivered is
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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 does the depreciation part of this machine's ownership cost? Use the time value method to calculate depreciation.
Related Book For
Basic Finance An Introduction to Financial Institutions Investments and Management
ISBN: 978-1111820633
10th edition
Authors: Herbert B. Mayo
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