Number of hours of usage to justify rental vs. ownership

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A contractor owns a unit of equipment that costs $20/hr, based on a usage of 1,800 hr/yr. for this equipment the annual cost of ownership can be calculated as $20/hr × 1,800 hr = $36,000/yr. Suppose this equipment can be rented for $4,000/month, $1,500/week, or $500/day. Evaluate the number of hours of usage to justify rental vs. ownership.

Reference no: EM132165405

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