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In: Civil Engineering

A clearing contractor purchases a dozer with a delivered price of $275,000. The company believes it...

A clearing contractor purchases a dozer with a delivered price of $275,000. The company believes it can sell the used dozer after 4 yr (2,000 hr/yr) of service for $56,000. There will be no major overhauls. The company’s cost of capital is 9.2%, and its tax rate is 33%. Property taxes, insurance, and storage will run 4%. What is the time value method depreciation part of the ownership cost?

$29.94/hr

$36.52/hr

$10.44/hr

$39.84/hr

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Expert Solution

Ally Wells answered 2 years ago
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