Determine the npv for the purchase of the loader

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Reference no: EM133337108

Question: Your company is looking at purchasing a loader at a cost of $125,000. The loader would have a useful life of seven years. At the end of the seventh year the salvage value is estimated to be $10,000. The loader could be billed out at $98.00 per hour and costs $30.00 per hour to operate. The operator costs $38.00 per hour. Using 1,100 billable hours per year;

A. Determine the NPV for the purchase of the loader using a MARR of 22%. Should your company purchase the loader?

B. Determine the annual equivalent. Should your company purchase the loader?

C. determine the payback period with interest. If the maximum allowable payback period with interest for your company is five years, should your company purchase the loader?

D. Draw a project balance chart for problem

Reference no: EM133337108

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