Big W Construction purchases a dump truck to use for its upcoming projects. The purchase...
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Big W Construction purchases a dump truck to use for its upcoming projects. The purchase price delivered is $278,000. Tires for this machine cost $20,000. The company believes it can sell the loader after 7 years (2,500 hr/yr) of service for $62,000. There will be no major overhauls. The companys cost-of-capital is 7.1%. Using the time value method to calculate depreciation and deducting the tire cost from the ownership cost, find the following:
1. Equivalent uniform period series (USCRF) required to replace the initial ownership cost ($)
2. Equivalent uniform end-of-period investments (USSFF) that equal the future salvage value ($)
3. Depreciation ($/hr)
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