Explore BrainMass
Share

Hourly owning cost

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 August 15, 2018, 2:25 pm ad1c9bdddf

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