Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3 points A new CAT mini excovator (121t dig depth) is $72,000 and will last about 10,000 operating hours, after which it can be salvaged

image text in transcribed
3 points A new CAT mini excovator (121t dig depth) is $72,000 and will last about 10,000 operating hours, after which it can be salvaged for about $2000 Youplan to use it about 20 hours per week, 50 weeks per year. Your neighbor is selling a used one of the same model that has about 5,000 hours remainine The used orve will bring $1500 alvage. Assuming. 2\% interest rate and neplecting OSM, what is the annual cost of the new exavator? Omit ' $ " and include the cents. 5,845,60 Ipointe A new CAT mini exc,avator (127t dig depth) is $72,000 and will last about 10,000 operating hours, after which it can be salvaged for about $2000. You plan to use it about 20 hours per weck. 50 weeks per year. Your neighbor is selling a used one of the same model that has about 5.000 hours remaining. The used one will bring $1500. 3 alvage. and the OSM will be 5500 ver vear more than the new one. Comparing annual costs of ownership at 2% interest, what is the maximum price you should offer vour neighbor? 3 points A new CAT mini excovator (121t dig depth) is $72,000 and will last about 10,000 operating hours, after which it can be salvaged for about $2000 Youplan to use it about 20 hours per week, 50 weeks per year. Your neighbor is selling a used one of the same model that has about 5,000 hours remainine The used orve will bring $1500 alvage. Assuming. 2\% interest rate and neplecting OSM, what is the annual cost of the new exavator? Omit ' $ " and include the cents. 5,845,60 Ipointe A new CAT mini exc,avator (127t dig depth) is $72,000 and will last about 10,000 operating hours, after which it can be salvaged for about $2000. You plan to use it about 20 hours per weck. 50 weeks per year. Your neighbor is selling a used one of the same model that has about 5.000 hours remaining. The used one will bring $1500. 3 alvage. and the OSM will be 5500 ver vear more than the new one. Comparing annual costs of ownership at 2% interest, what is the maximum price you should offer vour neighbor

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Economics Of Money Banking And Financial Markets

Authors: Frederic S. Mishkin

11th Global Edition

1292094184, 978-1292094182

More Books

Students also viewed these Finance questions