Problem 5 (20 pts) A contractor purchases a grader. The purchase price delivered is $225,000. Tires for this machine cost $25,000. The company believes it can sell the grader after 6 years (15,000 hr) of service for $40,000. There will be no major overhauls. The company's cost of capital is 7.50%, and its tax rate is 38%. There are no property taxes, but insurance and storage will run 2%. What is the owning cost for the grader? Use the time value method to calculate the depreciation portion of the ownership cost