A Construction company purchases a $500k pneumatic wheel equipment with a service life of three years. This machine is expected to work 200hr/mo in average. Its tire costs $6000 and this machine can be used at the end in other projects with a value of 20% of its initial purchase price. Assuming MARR of the company 10%. Calculate the depreciation portion of the ownership cost by two methods: AAI and Time value.
Assuming the product capacity of the equipment 80 cy/hr of earthworks, calculate the depreciation portion of the product cost of this machine in dollars per hours.