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The Nebraska Irrigation Department wants to determine whether they should purchase a used John Deere mini excavator or a Kubota powered rotary tiller for servicing

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The Nebraska Irrigation Department wants to determine whether they should purchase a used John Deere mini excavator or a Kubota powered rotary tiller for servicing irrigation ditches in an agricultural area of Nebraska. The initial cost of the excavator is $26,500 with a $9000 salvage value after 10 years. Fixed costs for insurance, license, etc. are expected to be $18,000 per year. The John Deere excavator will require one operator at $15 per hour and maintenance at $1 per hour. In 1 hour, 0.15 mile of ditch can be prepared. Alternatively, the Nebraska Irrigation Department can purchase a Kubota tiller and hire 2 workers at $11 per hour each. The tiller costs $1200 and has a useful life of 5 years with no salvage value. Its operating cost is expected to be $1.20 per hour, and with the Kubota tiller, the two workers can prepare 0.04 mile of ditch in 1 hour. The contractor's MARR is 10% per year. Determine the number of miles of ditch per year the Nebraska Irrigation Department would have to service for the two options to breakeven. The Nebraska Irrigation Department wants to determine whether they should purchase a used John Deere mini excavator or a Kubota powered rotary tiller for servicing irrigation ditches in an agricultural area of Nebraska. The initial cost of the excavator is $26,500 with a $9000 salvage value after 10 years. Fixed costs for insurance, license, etc. are expected to be $18,000 per year. The John Deere excavator will require one operator at $15 per hour and maintenance at $1 per hour. In 1 hour, 0.15 mile of ditch can be prepared. Alternatively, the Nebraska Irrigation Department can purchase a Kubota tiller and hire 2 workers at $11 per hour each. The tiller costs $1200 and has a useful life of 5 years with no salvage value. Its operating cost is expected to be $1.20 per hour, and with the Kubota tiller, the two workers can prepare 0.04 mile of ditch in 1 hour. The contractor's MARR is 10% per year. Determine the number of miles of ditch per year the Nebraska Irrigation Department would have to service for the two options to breakeven

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