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Determine the future worth for Problem 6. Should your company purchase the loader?
In Problem 6, your company is looking at purchasing a loader at a cost of \$125,000. The loader would have a useful life of seven years. At the end of the seventh year the salvage value is estimated to be \$10,000. The loader could be billed out at \$85.00 per hour and costs \$30.00 per hour to operate. The operator costs \$25.00 per hour. Using 1,100 billable hours per year determine the net present value for the purchase of the loader using a MARR of 22%. Should your company purchase the loader?

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