Your company is contemplating the purchase of a $950$ H Loader. Using the information below and the

Average Annual Investment formula, determine what the cost of capital$/$money will be per hour will be for

this piece of equipment.

Engine $210$ HP diesel

Overall Cost of Capital$/$Money $8\mathrm{.}5\%$

Useful life $4$ years

Hours used per year $1,700$

Initial cost $$450,000$

Cost of Tires $$35,000$

Estimated Salvage Value $$100,000$