- A track dozer cost $185,500 to purchase.
- Fuel, oil, grease, and minor maintenance are estimated to cost $35.00 per operating
hour. These costs will increase by 2% every year.
- A major engine repair costing $30,000 will probably be required after 7,200 hours of
use.
- The expected resale price (salvage value) is 20% of the original purchase price.
- The machine is expected to have a useful life of 10,800 hr.
- Interest for the first 3 years is 5.3%, and 6.7% for the final 3 years.
Calculate the Net Present Value