Using 1000 billable hours per year determine the net


Determine the rate of return for Problem 5. Should your company purchase the dump truck?

In Problem 5, your company is looking at purchasing a dump truck at a cost of $65,000. The truck would have a useful life of five years. At the end of the fifth year the salvage value is estimated to be $10,000. The dump truck could be billed out at $55.00 per hour and costs $13.00 per hour to operate. The operator costs $22.00 per hour. Using 1,000 billable hours per year determine the net present value for the purchase of the dump truck using a MARR of 18%. Should your company purchase the dump truck?

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Finance Basics: Using 1000 billable hours per year determine the net
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