A company wants to purchase a new front end loader. The Komatsu model costs $805, 899 "out the door". The company can make a 10% down payment on the loader and finance the balance of the purchase price with a 10 year loan that has special first time buyers APR of 9% and monthly payments. They expect that the loader will cost them $800 per day in expenses to operate on a 5 day per week 50 weeks per year basis and that these costs will escalate an average of $15 per year. They expect that this loader will provide a benefit to the company by increasing their production rate saving them $765 per day for the same work times. They estimate that they can sell the loader at the end of 10 years for $65,000. The daily costs can be added to calculate the annual costs assuming a 365 days per year. What is the annual cost to own the Komatsu loader over its useful 10 years if the long term annual cost of money is 7% and they obtain a 10 year loan that pays off the loan completely at the end of the 10 years? Comparing the Caterpillar loader to the Komatsu loader, which loader should the company purchase? A company wants to purchase a new front end loader. The Komatsu model costs $805, 899 "out the door". The company can make a 10% down payment on the loader and finance the balance of the purchase price with a 10 year loan that has special first time buyers APR of 9% and monthly payments. They expect that the loader will cost them $800 per day in expenses to operate on a 5 day per week 50 weeks per year basis and that these costs will escalate an average of $15 per year. They expect that this loader will provide a benefit to the company by increasing their production rate saving them $765 per day for the same work times. They estimate that they can sell the loader at the end of 10 years for $65,000. The daily costs can be added to calculate the annual costs assuming a 365 days per year. What is the annual cost to own the Komatsu loader over its useful 10 years if the long term annual cost of money is 7% and they obtain a 10 year loan that pays off the loan completely at the end of the 10 years? Comparing the Caterpillar loader to the Komatsu loader, which loader should the company purchase