Question $20$

A track dozer cost $$185,500$ to purchase.

Fuel, oil, grease, and minor maintenance are estimated to cost $$35\mathrm{.}00$ per operating

hour. These costs will increase by $2\%$ every year.

A major engine repair costing $$30,000$ will probably be required after $7,200$ hours of

use.

The expected resale price $($salvage value$)$ is $20\%$ of the original purchase price.

The machine is expected to have a useful life of $10,800hr.$

Interest for the first $3$ years is $5\mathrm{.}3\%,$ and $6\mathrm{.}7\%$ for the final $3$ years.

Calculate the Net Present Value

$-502,003\mathrm{.}75($with margin: $0)$

$502,003\mathrm{.}75($with margin: $0)$