6.15 Susan is considering buying a 2011 Smart ForTwo costing $21,635 and finds that the retaining values of the vehicle over next five years are as follows: 3 Percent of the total value retained after 36 months: 28% Percent of the total value retained after 60 months: 17% If her interest rate is 6% compounded annually, what is the ownership cost of the vehicle over three years? five years? 6.16 Nelson Electronics, Inc., just purchased a soldering machine to be used in its assembly cell for flexible disk drives. This soldering machine costs $150,000. Because of the specialized function it performs its useful life is estimated to be six years. At the end of that time, its salvage value is estimated to be $20,000. What is the capital cost for this investment if the firm's interest rate is 15%? 6.17 You invest in a piece of equipment costing $40,000. The equipment will be used for two years, and it will be worth $15,000 at the end of two years. The machine will be used for 4,000 hours during the first year and 6,000 hours during the second year. The expected savings associated with the use of the piece of equipment will be $28,000 during the first year and $40,000 during the second year. Your interest rate is 10%. (a) What is the capital recovery cost? (b) What is the annual equivalent worth? (c) What is net savings generated per machine-hour? 6.18 You are considering purchasing a dump truck. The truck will cost $45,000 and have operating and maintenance costs that start at $15,000 the first year and increase by $2,000 per year thereafter. Assume that the salvage value at the end of five years is $9,000 and interest rate is 12%. Determine the equivalent annual cost of owning and operating the truck