Question $3$: Due to increasing age and down time the productivity of a contractor$$s excavator is expected to decline with each passing year using the data below calculate the price in terms of rupees per cubic metre that the contractor must charge to cover the cost of buying and selling the excavator.

cost new $=2,200,000/-$

resale price @EOY $6=900,000/-$

Contractor borrows at i $=10\%$

Production decline at r $=(-)6\%$

Production for year $1=160,000$ cum

Assume all funds are credit at end of year