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Five (5) years ago, your company purchased a skid-steer loader at the beginning of your construction project in order to save on labor costs. The
Five (5) years ago, your company purchased a skid-steer loader at the beginning of your construction project in order to save on labor costs. The original purchase price was $36,000. The project ends in two (2) years which coincides with the end of the useful life of the skid-steer. The annual capital cost is $6,780 at i = 10%, in line with the original estimate when the skid-steer was purchased. A) Draw the Cash Flow Diagram (5 pts) B) What is the salvage value of the skid-steer at the end of its useful life? (15 pts) Ensure that you show your starting equation and steps for full credit. Five (5) years ago, your company purchased a skid-steer loader at the beginning of your construction project in order to save on labor costs. The original purchase price was $36,000. The project ends in two (2) years which coincides with the end of the useful life of the skid-steer. The annual capital cost is $6,780 at i = 10%, in line with the original estimate when the skid-steer was purchased. A) Draw the Cash Flow Diagram (5 pts) B) What is the salvage value of the skid-steer at the end of its useful life? (15 pts) Ensure that you show your starting equation and steps for full credit
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