Problem #$2$Problem #$4$

Your company is looking at purchasing a RT$30$ Ton Crane at a cost of $$125,000.$ The crane

would have a useful life of seven years. At the end of the seventh year the salvage value is

estimated to be $$10,000.$ The crane could be billed out at $$\frac{98\mathrm{.}00}{?}$ hour and costs $$\frac{30\mathrm{.}00}{?}$ hour

to operate. The operator costs $$\frac{38\mathrm{.}00}{?}$ hour. Using $1,100$ billable hours per year, determine

the NPV for the purchase of the crane using a MARR of $22\%.$

Determine at what periodic interest rate a $$2,000$ cash receipt occurring at the

beginning of year $1$ is equivalent to four cash disbursements: a $$575$ cash disbursement

occurring at the end of year $1,a$$$600$ cash disbursement occurring at the end of year $2,$

a $$625$ cash disbursement occurring at the end of year $3,$ and a $$650$ cash disbursement

occurring at the end of year $4.$ The periodic interest rate is compounded annually.

Interest Rate $(\%)$