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Your company is looking at purchasing the front-end loader in Example 17-3 at a cost of $120,000. The loader would have a useful life of
Your company is looking at purchasing the front-end loader in Example 17-3 at a cost of $120,000. The loader would have a useful life of five years with a salvage value of $12,000 at the end of the fifth year. The loader can be billed out at $95.00 per hour. It costs $30.00 per hour to operate the front-end loader and $25.00 per hour for the operator. Using 1,200 billable hours per year, determine the net present value for the purchase of the loader using a MARR of 20%.
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