A city maintenance department is upgrading its lawn keeping equipment.
The Lawn Chomper has an initial cost of $51812, expenses of $16.65 per hour, a lifespan of 7 years and a salvage value of $19581. It will require a major overhaul of $8831 at the end of year 3 and another overhaul of $9884 at the end of year 5.
The Green Hunger has an initial cost of $94929, a lifespan of 10 years and a salvage value of $15811. It will only require one overhaul of $24982 at the end of year 6.
What can the maximum expense per hour of the Green Hunger be to make it equivalent in cost to the Lawn Chomper?
The maintenance department typically runs 3411 hours per year. Use a MARR of 8% to make the calculation.