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A TL/YR = 530,000 B TL/HOUR = 156 C TL/HOUR = 50 D TL = 1,300,000 E TL = 360,000 F TL/HOUR = 320 G
A TL/YR = 530,000
B TL/HOUR = 156
C TL/HOUR = 50
D TL = 1,300,000
E TL = 360,000
F TL/HOUR = 320
G TL = 170,000
: A construction company can obtain a machine by either renting or purchasing it. If the machine is rented, it can be used for 4 years with a yearly rental cost of A TL/year. The hourly operating cost of the rented machine is B TL/hour for the first year, and it increases by CTL/hour each year. On the other hand, a new machine that has a service life of 6 years can be purchased for D TL, and it has a salvage value of E TL. The hourly operating cost of this machine is F TL/hour throughout its service life. Moreover, it requires a maintenance cost of G TL at the end of the third year. Using the given information, answer the following questions. The interest rate is given as 12% per year. a) Calculate the break-even point for the yearly operating hour of the machines? Determine whether the machine should be rented or purchased if the yearly operating hour of the machine is estimated as 3 000 hours. b) : A construction company can obtain a machine by either renting or purchasing it. If the machine is rented, it can be used for 4 years with a yearly rental cost of A TL/year. The hourly operating cost of the rented machine is B TL/hour for the first year, and it increases by CTL/hour each year. On the other hand, a new machine that has a service life of 6 years can be purchased for D TL, and it has a salvage value of E TL. The hourly operating cost of this machine is F TL/hour throughout its service life. Moreover, it requires a maintenance cost of G TL at the end of the third year. Using the given information, answer the following questions. The interest rate is given as 12% per year. a) Calculate the break-even point for the yearly operating hour of the machines? Determine whether the machine should be rented or purchased if the yearly operating hour of the machine is estimated as 3 000 hours. b)Step by Step Solution
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