Big W Construction purchases a dump truck to use for its upcoming projects. The purchase price delivered is $278,000. Tires for this machine cost $20,000. The company believes it can sell the loader after 7 years (2,500 hr/yr) of service for $62,000. There will be no major overhauls. The company's cost-of-capital is 7.1%. Using the time value method to calculate depreciation and deducting the tire cost from the ownership cost, find the following: Equivalent uniform period series (USCRF) [ Choose ] required to replace the initial ownership cost ($) Equivalent uniform end-of-period investments (USSFF) that equal the future [ Choose ] salvage value ($) Depreciation ($/hr) [ Choose ]

Big W Construction purchases a dump truck to use for its upcoming projects. The purchase price delivered is $278,000. Tires for this machine cost $20,000. The company believes it can sell the loader after 7 years (2,500 hr/yr) of service for $62,000. There will be no major overhauls. The company's cost-of-capital is 7.1%. Using the time value method to calculate depreciation and deducting the tire cost from the ownership cost, find the following: Equivalent uniform period series (USCRF) [ Choose ] required to replace the initial ownership cost ($) Equivalent uniform end-of-period investments (USSFF) that equal the future [ Choose ] salvage value ($) Depreciation ($/hr) [ Choose ]

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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