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?

#$2$

Using Payback Without Interest, in what year does this payback?

Is that a green light to the purchase?

Yes

No

Purchase price $/$ Annual Profit

The purchase pays back without interest during Year:

$6$

$4$

$5$

$3$