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A land development company is considering the purchase of earth-moving equipment. This equipment will have an estimated first cost of $175,000, a salvage value of
A land development company is considering the purchase of earth-moving equipment. This equipment will have an estimated first cost of $175,000, a salvage value of $75,000, a life of 10 years, a maintenance cost of $40,000 per year, and an operating cost of $300.0 per day. Alternatively, the company can rent the necessary equipment for $1,050 per day and hire a driver at $180 per day. If the companys MARR is 13.00% per year, how many days per year must the company need the equipment in order to justify its purchase? (Round the final answer to three decimal places.) (a)The company must need the equipment ___ days per year in order to justify its purchase. (b) The daily rental cost to justify renting over purchasing is determined to be $____
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