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Asphalt Pavers, Inc. purchases a loader to use at its asphalt plant. The purchase price delivered is $325,000. Tires for this machine cost $35,000. The
Asphalt Pavers, Inc. purchases a loader to use at its asphalt plant. The purchase price delivered is $325,000. Tires for this machine cost $35,000. The company believes it can sell the loader after 5 yr (2, 500 hr/yr) of service for $100,000. There will be no major overhauls. The company's cost-of-capital is 8%. What is the hourly depreciation part of this machine's ownership cost? Use the time value method to calculate depreciation
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