Problem
Earthmovers, Inc., purchases a grader to maintain haul roads. The purchase price delivered is $165,003. Tires for this machine cost 524,030. The company believes it can sell the grader after 6 yr (15,000 hr) of service for $26,000. There will be no major overhauls. The company's cost of capital is 7.3%, and its tax rate is 35%. There are no property taxes, but insurance and storage will run 3%. What is the owning cost for the grader? Use the time-value method to calculate the depreciation portion of the ownership cost.
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.