The companies cost of capital rate


A loader cost $326,000 with a set of tires costing $26,000. The loader can be sold after 6 years (2,800 hours operated per year) @ $75,000. The companies cost of capital rate (i) is 6.31%. What is the depreciation part of the machine's ownership cost using the AAI method of calculation?

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Accounting Basics: The companies cost of capital rate
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