The residual value of the machine at disposal

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Reference no: EM13854853

Calculate the ownership cost per hour of a 1044 kW excavator with a capital cost of $6,000,000 and an economic life of 10,000 hours over seven years under average operating conditions. The residual value of the machine at disposal is 25 percent of the capital cost and interest and insurance is 12 percent per annum. Show also the interest and depreciation costs per hour.

Reference no: EM13854853

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