What is the hourly owning cost of the machine


Problem

A Truck is purchased for $200,000 and is planned to have an operating life of 8 years working 5,000 hours per year. What is the hourly owning cost of this machine, assuming the company requires a 12% return on investment, using (i) The average investment method (ii) The equivalent lease cost method

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Cost Accounting: What is the hourly owning cost of the machine
Reference No:- TGS03234947

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