Problem
Pushem Down clearing contractors purchases a dozer with a delivered price of $275,000. The company believes it can sell the used dozer after 4 yr (2,000 hr/yr) of service for $56,000. There will be no major overhauls. The company's cost of capital is 9.2%, and its tax rate is 33%. Property taxes, insurance, and storage will run 4%. What is the owning cost for the dozer? Use the time-value method to calculate the depreciation portion of the ownership cost. (S29.943Thr)
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.