Question: Determine the probable average cost per hour in the 3^rd year of the equipment for owning and operating a wagon under the conditions listing below.

Determine the probable average cost per hour in the 3^rd year of the equipment for owning and operating a wagon under the conditions listing below. Use the straight-line method of depreciation. Operator cost $20/hr Operating conditions Average Delivered price $142,000 Cost of set of tires $12,000 Expected life 5years Hours operated $2000 h/year Estimated salvage value $42,000 Fuel cost 3.50/gal Loader horsepower 440 hp Rate for interest, tax, ins, storage 15%
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