Problem
Asphalt Pavers, Inc., purchases a loader to use at its asphalt plant. The purchase price delivered is $235,000. Tires for this machine cost $24,000. The company believes it can sell the loader after 7 yr (3,000 hey of service for $79,000. There will be no major overhauls. The company's cost of capital is 6.3%. What is the depreciation pan of this machine's ownership cost? Use the time value method to calculate depreciation. ($9.236/hr)
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.