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a contractor needs a bulldozer. He can purchase it from the market or rent it from...

a contractor needs a bulldozer. He can purchase it from the market or rent it from a dealer .

A used bulldozer with a remaining life of 10 years and QR 10,000 salvage value can be purchased for QR 40,000. The annual maintenance cost of the used bulldozer is assumed to be QR 20,000 per year. In addition, operating Cost of the bulldozer is expected to be QR 25 per hour.

Alternatively, a bulldozer can be rented for Qr 150/hr and there will be no any other costs. All operating costs inclusive in the rent.



At an interest rate of 10% per year, how many hours per year the bulldozer needs to be operated by the contractor to make breakeven between two alternatives?
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