1. A machine cost $8,000 to purchase. Fuel and minor maintenance are estimated to cost $15 per operating hour (those hours when the engine is operating and the machine is doing work) A set of tires cost $4500 to replace and their estimated life time is 3000 use hours. A$9500 major repair will be required after 4500 hr. of use. The machine is expected to last 9000 hr. after which it will be sold at price (salvage value) equal to 18% of the original purchase price. A final set of new tires will not be purchased before the sale. How much should the owner of the machine charge per hour of use, if it is expected that the machine will operate 1500 per year? The company's cost of capital rate is 5.5%. (35 points)