Solution-Alculate the npv for both track hoes which should

Alculate the npv for both track hoes which should choose

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Reference no: EM131138588

Your company needs to purchase a new track hoe and has narrowed the selection to two pieces of equipment. The first track hoe costs $100,000 and costs $32.00 per hour to operate. The second track hoe costs $110,000 and costs $27.00 per hour to operate. The operator costs $28.00 per hour. The revenue from either track hoe is $95.00 per hour. Using a useful life of four years, a salvage value equal to 20% of the purchase price, 1,200 billable hours per year, and a MARR of 20%, calculate the NPV for both track hoes. Which track hoe should your company choose?

Reference no: EM131138588

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Alculate the npv for both track hoes which should choose

Reference no: EM131138588

Reference no: EM131138588

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