• Interest is expected to be 10% per year unless stated otherwise

Time

• 13 weeks in a quarter, 52 weeks in a year, 4 quarters in a year, 3 months per quarter

Taxation

• Effective tax rate is 30%

Capital & Exchange

• Capital can be borrowed at 12% per year

What is the Annual Equivalent Worth of the C Starter rock moving system?

Rock and Roller Bigger and Boulder C Starter Unit Cost of equipment 300 400 500 $K Material and 400 500 600 $K labor saving per year 500 600 700 $K Life 8 7 yIS Scrap 1.5 2.5 3.3 $K