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Use the following information to answer questions 17 through XX Mappy Harvesters can trade for a new combine for a cost of $400,000, including the value of the old combine as a trade-in. The expected salvage value of the combine after 8 years is $120,000 and their average interest rate stays the same as previously calculated? 16. What is the average value of the combine over the eight-year period? (1 point) 17. How much is the average annual interest costs ($) that should be included in calculating ownership costs? (1 point) 18. What is the average annual depreciation of the combine over the eight-year period using the straight line method? (1 point) 400,000 - 120.000 - 35,000 # 35,000 19. What are the average annual insurance and tax costs assuming that together they are one percent of the average value of the combine? (1 point) 20. What is the total average ownership cost per year over the next eight years? (1 point) W oestions 12 through 16 Happy Harvesters, Inc. owns a large combine they know their costs for fuel repairs and labor, but need help calculating their current ownership casts so they can tell the custom rates the charge for combining are high enough. They have assembled the following facts Current year Estimated current value of the combine $250,000 They borrowed $150.000 75 from the bank interest rate (60%) They have $100,000 of their own equity capital invested opportunity cot 40) 11. What is their average interest rate weighted cost of capital? [1 point) 5.70 /. 6.04x4+ (.06.6)= 0.05200 5.2% 12. What is the dollar amount of interest that should be included in calculating ownership costs for the current year? [1 point) $9,006 150,000 X.06 = 9000 13. What is the dollar amount of depreciation that should be included in cakulating ownership costs for the current year using an estimate of 10% of the current combine value? 11 point) $25.000 250,000 2500 14. What is the dollar amount of taxes and insurance that should be included in calculating annual ownership costs for the current year using an estimate of 1% of the current combine value? (1 point) $2,500 250,000 X 2500 15. What are the total estimated ownership costs for the current year? (1 point) #36,506 9,000 + 25,000 + 2,500 = $36,500 Use the following information to answer questions 17 through XX Mappy Harvesters can trade for a new combine for a cost of $400,000, including the value of the old combine as a trade-in. The expected salvage value of the combine after 8 years is $120,000 and their average interest rate stays the same as previously calculated? 16. What is the average value of the combine over the eight-year period? (1 point) 17. How much is the average annual interest costs ($) that should be included in calculating ownership costs? (1 point) 18. What is the average annual depreciation of the combine over the eight-year period using the straight line method? (1 point) 400,000 - 120.000 - 35,000 # 35,000 19. What are the average annual insurance and tax costs assuming that together they are one percent of the average value of the combine? (1 point) 20. What is the total average ownership cost per year over the next eight years? (1 point) W oestions 12 through 16 Happy Harvesters, Inc. owns a large combine they know their costs for fuel repairs and labor, but need help calculating their current ownership casts so they can tell the custom rates the charge for combining are high enough. They have assembled the following facts Current year Estimated current value of the combine $250,000 They borrowed $150.000 75 from the bank interest rate (60%) They have $100,000 of their own equity capital invested opportunity cot 40) 11. What is their average interest rate weighted cost of capital? [1 point) 5.70 /. 6.04x4+ (.06.6)= 0.05200 5.2% 12. What is the dollar amount of interest that should be included in calculating ownership costs for the current year? [1 point) $9,006 150,000 X.06 = 9000 13. What is the dollar amount of depreciation that should be included in cakulating ownership costs for the current year using an estimate of 10% of the current combine value? 11 point) $25.000 250,000 2500 14. What is the dollar amount of taxes and insurance that should be included in calculating annual ownership costs for the current year using an estimate of 1% of the current combine value? (1 point) $2,500 250,000 X 2500 15. What are the total estimated ownership costs for the current year? (1 point) #36,506 9,000 + 25,000 + 2,500 = $36,500