Big W Construction purchases a dump truck to use for its upcoming projects. The purchase price delivered is $278,000. The tires for this machine cost $20,000. The company believes it can sell the loader after 7 years (2,500 hr/yr) of service for $62,000. There will be no major overhauls. The company’s cost-of-capital is 7.1%. Using the time value method to calculate depreciation and deduct the tire cost from the ownership cost, find the following:

Required

1. Equivalent uniform period series (USCRF) required to replace the initial ownership cost ($)

2. Equivalent uniform end-of-period investments (USSFF) that equal the future salvage value ($)

3. Depreciation ($/hr)

Answer rating: 100% (QA)

Quiz 1 The equivalent uniform period series USCRF required to replace the initial ownership cost is ... View the full answer