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sing ACM, determine hourly rate to charge for this scenario: Machine cost $350,000 (w/tires) Regular maintenance $20,000 per yr Tires replaced once after 3 years; cost $4,000 present and in future

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter9: Capital Budgeting Techniques

Section: Chapter Questions

Problem 12PROB

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Question

sing ACM, determine hourly rate to charge for this scenario:

Machine cost $350,000 (w/tires)
Regular maintenance $20,000 per yr
Tires replaced once after 3 years; cost $4,000 present and in future
Major repair in year 3 for $10,000
Salvage for $90,000 after 6 years
1,800 hrs/yr
MARR = 6%

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