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Your company buys a piece of equipment for a cost of 225k including tires. Freight costs are 4k. Tire replacement costs 25k and lasts 4000

Your company buys a piece of equipment for a cost of 225k including tires. Freight costs are 4k. Tire replacement costs 25k and lasts 4000 hours. The equipment has a total life of 10000 hours and the plan is to use it 1000 hrs per year. Fuel costs 2.35 per gallon and equipment usage is 5gal/hr. The equipment will be used for 5 years and sold for 100k. Company overhead and interest is 20%. Determine he total ownership and operating cost.

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