(Solved): Asphalt Pavers, Inc., purchases a loader to use at its asphalt plant. The purchase price delivered ...

Asphalt Pavers, Inc., purchases a loader to use at its asphalt plant. The purchase price delivered is \( \$ 235,000 \). Tires for this machine cost \( \$ 24,000 \). The company believes it can sell the loader after 7 years \( (3,000 \mathrm{hr} . / \mathrm{yr} \).) of service for \( \$ 79,000 \). There will be no major overhauls. The company's cost of capital is \( 6.3 \% \). Please calculate the followings: 1) What is the depreciation part of this machine's ownership cost using the time value method? 2) What is the depreciation part of this machine's ownership cost using the AAI method?