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An equipment rental firm purchased a new scissor lift to add to its rental fleet. The scissor lift cost $19,000 and is expected to have a useful life of 3 years. The salvage value at the end of the lift's useful life is estiamted to be $3,000. Maintenance and ownership costs for the lift are estimated to be $6 per hour rented, and the lift is expected to rented for 800 hours per year. Using an MARR of 7%, determine the lowest rental rate that the company should use. Express your answer in $/hr to the nearest cent.

An equipment rental firm purchased a new scissor lift to add to its rental fleet. The scissor lift cost $19,000 and is expected to have a useful life of 3 years. The salvage value at the end of the lift's useful life is estiamted to be $3,000. Maintenance and ownership costs for the lift are estimated to be $6 per hour rented, and the lift is expected to rented for 800 hours per year. Using an MARR of 7%, determine the lowest rental rate that the company should use. Express your answer in $/hr to the nearest cent.

Algebra: Structure And Method, Book 1
Algebra: Structure And Method, Book 1
(REV)00th Edition
ISBN:9780395977224
Author:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole
Publisher:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole
Chapter2: Working With Real Numbers
Section2.3: Rules For Addition
Problem 8P
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An equipment rental firm purchased a new scissor lift to add to its rental fleet. The scissor lift cost $19,000 and is expected to have a useful life of 3 years. The salvage value at the end of the lift's useful life is estiamted to be $3,000. Maintenance and ownership costs for the lift are estimated to be $6 per hour rented, and the lift is expected to rented for 800 hours per year. Using an MARR of 7%, determine the lowest rental rate that the company should use. Express your answer in $/hr to the nearest cent.
Transcribed Image Text:An equipment rental firm purchased a new scissor lift to add to its rental fleet. The scissor lift cost $19,000 and is expected to have a useful life of 3 years. The salvage value at the end of the lift's useful life is estiamted to be $3,000. Maintenance and ownership costs for the lift are estimated to be $6 per hour rented, and the lift is expected to rented for 800 hours per year. Using an MARR of 7%, determine the lowest rental rate that the company should use. Express your answer in $/hr to the nearest cent.
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