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Hourly owning cost

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A truck is purchased for $1,500,000 and is planned to have an operating life of 10 years working 5,000 hours per year. What is the hourly owning cost of this machine , assuming the company requires a 16% return on investment ,using
a) the average investment method
b) the equivalent lease cost method

© BrainMass Inc. brainmass.com October 15, 2018, 9:00 am ad1c9bdddf - https://brainmass.com/economics/investments/hourly-owning-cost-338188

Solution Summary

The solution explains how to calculate the hourly owning cost of the truck under a) the average investment method b) the equivalent lease cost method

$2.19