Question: 5 . 8 Use Method 1 ( combined depreciation and investment costs for ownership costs ) to determine the probable cost per hour of owning

5.8Use Method 1(combined depreciation and investment costs for ownership costs) to determine the probable cost per hour of owning and operating a rubber tire unit of equipment with a 250-hp diesel engine. The following conditions apply.Factory delivered price $450,000 Sales tax 5% of delivered price Unloading and assembling $2,500 Salvage value $120,000Useful life 5 yr Hours used per year 1,500 hr Interest on investment 8% Maintenance and repairs 70% of straight-line depreciation Diesel engine 250 hp Operating factor 0.60 Fuel costs $4.00/gal Crankcase capacity 8 gal Hours between oil changes 120 hr Oil costs $16/ga

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Civil Engineering Questions!