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In: Advanced Math

A construction firm is considering buying a backhoe, since it pays $50/h to rent one, and...

A construction firm is considering buying a backhoe, since it pays $50/h to rent one, and it needs to use a backhoe for 150 hours per month. Assuming a backhoe lasts 5 years, and has monthly maintenance of $2,000 and a salvage value of $15,000, what’s the most the company should pay for this backhoe? (Use a 6% discount rate)

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Colby Messinger answered 4 months ago
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