6-56 Dick Dickerson Construction, Inc. has asked you to help them select a new backhoe. You have a choice between a wheel-mounted version, which costs $60,000 and has an expected life of 5 years and a salvage value of $2000, and a track-mounted one, which costs $80,000, with a 7-year life and an expected salvage value of $10,000. Both machines will achieve the same productivity. Interest is 8%. Which one will you recommend? Use an annual worth analysis.

6-56 Dick Dickerson Construction, Inc. has asked you to help them select a new backhoe. You have a choice between a wheel-mounted version, which costs $60,000 and has an expected life of 5 years and a salvage value of $2000, and a track-mounted one, which costs $80,000, with a 7-year life and an expected salvage value of $10,000. Both machines will achieve the same productivity. Interest is 8%. Which one will you recommend? Use an annual worth analysis.

Fundamentals Of Construction Estimating

4th Edition

ISBN:9781337399395

Author:Pratt, David J.

Publisher:Pratt, David J.

Chapter11: Pricing Concrete Work

Section: Chapter Questions

Problem 9RQ: Calculate the cost per cubic yard to place concrete using each of the alternatives described. The...

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