Problem Statement

A track dozer costs $205,000 to purchase. Fuel, Oil, Grease, and Minor Maintenance are estimated to cost $32.00 per operating hour. A major engine repair costing $16,000 will probably be required after 7.200 hours of use. The expected resale price (salvage value) is 15% of the original purchase price. The machine is expected to have a useful life of 10,800 hours. How much should the owner of the machine charge per hour of use, if it is expected that the machine will operate 1,800 hours per year. The company's cost-of capital rate is 8%.

Please give me the correct answer with explanation.