Alfred Home Construction is considering the purchase of five dumpsters and th ...
Alfred Home Construction is considering the purchase of five dumpsters and the transport truck to store and transfer construction debris from building sites. The entire rig is estimated to have an initial cost of \( \$ 132,500 \), a life of 8 years, a \( \$ 8500 \) salvage value, an operating cost of \( \$ 40 \) per day, and an annual maintenance cost of \( \$ 6000 \). Alternatively, Alfred can obtain the same services from the city as needed at each construction site for an initial delivery cost of \( \$ 125 \) per dumpster per site and a daily charge of \( \$ 36 \) per day per dumpster. An estimated 23 construction sites will need debris storage throughout the average year. If the minimum attractive rate of return is \( 10 \% \) per year, how many days per year must the equipment be required to justify its purchase? The number of days per year the equipment must be required is determined to be