4. Your company plans to purchase a new front loader for $250,000 and use it for eight years. After eight years, its estimated salvage value will be $50,000. The annual interest rate is 7.5%. You wish to determine your firm's annual cost of owning the loader.
a. How many time value factors are needed to solve this problem?
b. What is the annual cost of acquiring the front loader?
c. What is the annual return based on selling the loader after eight years?
d. What is the contractor's annual cost of owning the loader?