Question
A bulldozer was bought for 0.50M and have an estimated useful life of 10 years after which it will have a scrap value of 0.05M.
A bulldozer was bought for 0.50M and have an estimated useful life of 10 years after which it will have a scrap value of 0.05M. Repair and maintenance is placed at 35T annually, while cost for fuel, oil, lubricant and operator plus helper will be 12T monthly. Determine the following:
What is the annual cost using the straight line method for computing depreciation when the minimumattractive rate of return is 8%?
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Managerial Economics and Organizational Architecture
Authors: James Brickley, Clifford W. Smith Jr., Jerold Zimmerman
6th edition
73523143, 73523149, 978-0073523149
