Determine the incremental net present value for Problem 8. Which track hoe should your company choose? In

Question:

Determine the incremental for Problem 8. Which track hoe should your company choose?
In Problem 8, Your company needs to purchase a new track hoe and has narrowed the selection to two pieces of equipment. The first track hoe costs $100,000 and has an hourly operation cost of $31.00 and a $35,000 at the end of three years. The second track hoe costs $65,000 and has an hourly operation cost of $36.00 and no at the end of three years. The operator cost is $29.00 per hour. The revenue from either track hoe is $95.00 per hour. Using 1,200 billable hours per year and a of 20%, calculate the NPV for both track hoes. Which track hoe should your company choose?

Net Present Value
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