Solution-Solve what the cost is for each hour of using the

Solve what the cost is for each hour of using the machine

Reference no: EM132560641

The Purchase cost of a construction machine is 58939 and It is calculated that diesel, oil and small maintenance costs will be 39 TL for each hour of using the machine.

At the end of every 4000 hours of operation, the wheels will be replaced and the cost is 3000 .After the machine works 8000 hours, a great maintenance of 7000 will be made. The economic life of this machine is 14000 hours and the scrap price is calculated to be 10% of the purchase price.

It is expected that the machine will be used for 2000 hours per year.

Question 1: Calculate what the cost is for each hour of using the machine by accepting the annual interest rate as 16% and Draw a cash flow diagram.

Reference no: EM132560641

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Solve what the cost is for each hour of using the machine

Reference no: EM132560641

Reference no: EM132560641

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