$4$

$[15]$ Estimate the total cost per hour of owning and operating a bulldozer given the following characteristics and conditions:

Engine $575HP$ diesel

Overall cost of money $8\%$

Useful life $6$ years

Hours used per year $2,200$

Initial cost $$675,000$

Cost of tires $$35,000$

Estimated salvage value $$85,000$

Annual cost of repairs equals $65\%$ of straight$-$line depreciation

Operating factor is $0\mathrm{.}55$

Cost of fuel $$0\mathrm{.}45$ per liter

Crankcase capacity is $55$ liters

Time between oil changes is $220$ hours

Cost of lube oil $$2\mathrm{.}50$ per gal

Cost of other oils and grease $$0\mathrm{.}44$ per hour

Repairs to tires $16\%$ of tire depreciation

Life of tires $4,500$ hours

Use the "time value of money" method to calculate the ownership cost.