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Question: Calculate the average hourly owning cost for the first year of life of the tractor of Problem if the tractor is operated 2000 hours during the year. The rate for interest, taxes, and insurance is 12%, and the rate for storage and miscellaneous costs is 2%. Use the sum-of-the-years; -digits method of depreciation.

Problem: A crawler tractor costs $250,000, has an estimated salvage value of $50,000, and has a 5-year life. Find the annual depreciation and book value at the end of each year using the double-declining-balance method of depreciation.

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Management Theories, Management Studies

Category:- Management Theories
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