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 $22\%.$