Business, 10.09.2019 02:30 avalonr2003
Earthmovers, inc., purchases a grader to maintain haul roads. the purchase price delivered is $216,000. tires for this machine cost $26,000. the company believes it can sell the grader after 6 years (15,000 hr) of service for $35,000. there will be no major overhauls. the company's cost of capital is 7.21 %, and its tax rate is 42%. there are no property taxes, hut insurance and storage will run 2%. what is the owning cost for the grader? use the time value method to calculate the depreciation portion of the ownership cost.
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Earthmovers, inc., purchases a grader to maintain haul roads. the purchase price delivered is $216,0...
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