An equipment rental firm purchased new scissor lift

Assignment Help Business Economics

Reference no: EM131096706

An equipment rental firm purchased a new scissor lift to add to its rental fleet. The scissor lift cost $25,000 and is expected to have a useful life of 2 years. The salvage value at the end of the lift's useful life is estiamted to be $2,000. Maintenance and ownership costs for the lift are estimated to be $6 per hour rented, and the lift is expected to rented for 800 hours per year. Using an MARR of 7%, determine the lowest rental rate that the company should use. Express your answer in $/hr to the nearest cent.

Reference no: EM131096706

Questions Cloud

Synopsis of the attention video : Provide a one page (12-pt. font, double-spaced) synopsis of the "Attention Video" referenced above. You are to try and incorporate some of the concepts gleaned from your text with what was observed in the video.

Design an application that reads records from an input : Design an application that reads records from an input

Higher score for the cognitive ability test : This applicant was rejected over a more qualified one who obtained a higher score for the cognitive ability test (with all other scores being equal). The applicant sued the company. Did he have a chance to win the case? Please explain.

Design an application that continuously accepts : Design an application that continuously accepts a customer's title (for example, "Mrs."), a fi rst name, last name, street address, city, state, zip code, and number of boxes in the order until an appropriate sentinel value is entered. Produce eno..

An equipment rental firm purchased new scissor lift : An equipment rental firm purchased a new scissor lift to add to its rental fleet. The scissor lift cost $25,000 and is expected to have a useful life of 2 years. The salvage value at the end of the lift's useful life is estiamted to be $2,000. Mainte..

Emerging economies and for international new ventures : 1. Describe the specialized strategies required for emerging economies and for international new ventures.

The concept of lean was originally started : The concept of LEAN was originally started and apply with Toyota, however, many automotive manufacturing companies today use this theory. Resources are limited and need to be utilized in the most efficient way as even the most marginal difference can..

Example of product or service : Briefly describe pricing for your example of product or service. How does this compare to competitors, assuming competitors are at or near break-even point with their pricing? Analyze pricing alternatives and make recommendations about pricing go..

The machine language of the java virtual machine : Most programming languages, such as C and C++, are compiled directly into the machine language of a "real" microprocessor (for example, an Intel x86 or DEC alpha). Java takes a different approach. It is commonly compiled into the machine language ..

User Account

All Pages