Deal #$1$ $$90,000$ Loader

You want to buy a frontend loader for $$90,000.$

Five$-$year useful life and a $$9,000$ salvage value

Cost to operate of $$\frac{48}{?}$ hour and billable rate of $$\frac{65}{?}$ hour

$1,200$ Billable Hours per year

The company's MARR is $5\%$

Should they buy the piece of equipment?

#$1$

What is the Net Present Value of this transaction discounted at $5\%?$

$+$$$3,692$

$-$$$1,494$

$-$$$2,235$

$+$$$6,520$

$+$$$5,372$