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Levels Tought:
University
| Teaching Since: | Apr 2017 |
| Last Sign in: | 441 Weeks Ago, 1 Day Ago |
| Questions Answered: | 9562 |
| Tutorials Posted: | 9559 |
bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
Your company needs to purchase a new track hoe and has narrowed the selection to two pieces of equipment. The first track hoe costs $100,000 and has an hourly operation cost of $31.00 and a $35,000 salvage value at the end of three years. The second track hoe costs $65,000 and has an hourly operation cost of $36.00 and no salvage value at the end of three years. The operator cost is $29.00 per hour. The revenue from either track hoe is $95.00 per hour. Using 1,200 billable hours per year and a MARR of 20%, calculate the NPV for both track hoes. Which track hoe should your company choose?
The----------- re-----------ven-----------ue -----------fro-----------m e-----------ith-----------er -----------tra-----------ck -----------hoe----------- is----------- $9-----------5 p-----------er -----------hou-----------r H-----------our-----------ly -----------ope-----------rat-----------ion----------- co-----------st -----------for----------- fi-----------rst----------- ho-----------e i-----------s $-----------31 -----------Ope-----------rat-----------or -----------cos-----------t i-----------s $-----------29 -----------So -----------Hou-----------rly----------- pr-----------ofi-----------t f-----------or -----------fir-----------st -----------hoe----------- is----------- =9-----------5-3-----------1-2-----------9=$-----------35