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Question: asphalt pavers inc purchases a loader to use at its...

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Asphalt Pavers, Inc., purchases a loader to use at its asphalt plant. The purchase price delivered is $235,000. Tires for this machine cost $24,000. The company believes it can sell the loader after 7 yr (3.000 hr/yr) of service for $79.000. There will be no major overhauls. The companys cost of capital is 6.3%. What is the hourly depreciation part of this machines ownership cost? Use the time value method to calculate depreciation. 3.

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