Your company has purchased a new track hoe for $100,000. The track hoe can be billed out

Question:

Your company has purchased a new track hoe for $100,000. The track hoe can be billed out at $95.00 per hour, has an hourly operation cost of $33.00, and has a useful life of four years. At the end of four years the track hoe has a of $20,000. The operator cost is $27.00 per hour. Using a of 21%, what is the minimum number of billable hours each year in order for your company to break even?

Salvage Value
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