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Question 1-B: Company needs to purchase an excavator; its initial cost is equal to 0.85 * 10 SR. The use of this excavator will reduce

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Question 1-B: Company needs to purchase an excavator; its initial cost is equal to 0.85 * 10" SR. The use of this excavator will reduce the labor usage from 404,000 SR/year to 22 SR/hr, oil, fuel and grease costs of excavator are equal to 80 SR/hr, repair and maintenance cost is equal to 33% from straight line depreciation, batch plant salvage value is equal to 15* 109 SR at end of any year of usage. Assume i = 15% and operating time is low. Give your decision to accept or not for excavator in case of useful life is equal to 3 years? Find useful life of excavator to make purchasing it is more economical? Question 1-B: Company needs to purchase an excavator; its initial cost is equal to 0.85 * 10" SR. The use of this excavator will reduce the labor usage from 404,000 SR/year to 22 SR/hr, oil, fuel and grease costs of excavator are equal to 80 SR/hr, repair and maintenance cost is equal to 33% from straight line depreciation, batch plant salvage value is equal to 15* 109 SR at end of any year of usage. Assume i = 15% and operating time is low. Give your decision to accept or not for excavator in case of useful life is equal to 3 years? Find useful life of excavator to make purchasing it is more economical

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