You are thinking about buying a combine to do some custom ha…
You are thinking about buying a combine to do some custom harvesting. The combine will cost $300,000. You will use it for 5 years and it will have a salvage value of 25% of its cost at the end of 5 years. You want a return of 5% on your investment. You estimate insurance will be 0.05% of average asset value. There are no taxes personal property. Calculate the annual ownership costs.