Make each year to break even on the cost of the hoe

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Reference no: EM132033947

The “We Dig It” Construction Company purchased an excavator (AKA “track hoe”) for $150,000 cash in 1998. They sold it this year (2018) for $15,000. Assuming that the depreciation on the track hoe was 3% annually, how much did “We Dig It” have to make each year to break even on the cost of the hoe? Assume that this money was in an account earning 5% interest. (Note, this does not include operation and maintenance costs,)

Reference no: EM132033947

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