Problem #$5$

Your company is looking at purchasing a new track hoe at a cost of $$100,000.$ The track hoe would

have a useful life of five years. At the end of the fifth year the salvage value is estimated to be

$$10,000.$ The track hoe could be billed out at $$\frac{102\mathrm{.}00}{?}$ hour and costs $$\frac{31\mathrm{.}00}{?}$ hour to operate. The

operator costs $$\frac{36\mathrm{.}00}{?}$ hour. Using $1,200$ billable hours per year, determine the Rate of Return for the

purchase of the track hoe using a MARR of $20\%.$