A track dozer cost $165,000 to purchase. Fuel, oil, grease, and minor maintenance are estimated to cost $38.00 per operating hour. The expected resale price of the dozer is 21% of its original purchase price. Use the straight-line depreciation method. The machine is expected to have a useful life of 10,800 hours. The machine will operate for 1,800 hours per year. The companys cost of capital rate is 6% per annum.

(a). What is the life of the equipment (in years)?

(b). What is the operating cost of the equipment ($/hr)?

(c). What is the ownership cost of the equipment ($/hr)?