Calculate the expected hourly owning and operating cost for the sixth year of the operation of...
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Calculate the expected hourly owning and operating cost for the sixth year of the operation of the wheel loader described below. Initial cost: $125,000 Tire cost; $18,000 Estimated life: 6 years Salvage value: $11,460.89 Depreciation method: Double-Declining Balance Method Investment cost for the 6th year: %17.6 of Initial cost Tax, insurance and storage cost for the 6th year: %7 of book value Operating conditions: Average Rated power: 477 hp Fuel price: $1.048/litre Operator's wages: $12.00 Operating hours: 6 days a week and 10 hours per day *Note: Equipment remains idle for 42 days during the year! Calculate the expected hourly owning and operating cost for the sixth year of the operation of the wheel loader described below. Initial cost: $125,000 Tire cost; $18,000 Estimated life: 6 years Salvage value: $11,460.89 Depreciation method: Double-Declining Balance Method Investment cost for the 6th year: %17.6 of Initial cost Tax, insurance and storage cost for the 6th year: %7 of book value Operating conditions: Average Rated power: 477 hp Fuel price: $1.048/litre Operator's wages: $12.00 Operating hours: 6 days a week and 10 hours per day *Note: Equipment remains idle for 42 days during the year!
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