Question: Consider a Caterpillar 966M front-end loader. This equipment will be operated 10 h/day and 245 days/year in average conditions. Using the following information: Initial cost

Consider a Caterpillar 966M front-end loader. This equipment will be operated 10 h/day and 245 days/year in average conditions. Using the following information: Initial cost = SR 873,500 Estimated life = 7 years Salvage value = SR 125,300 Interest on the investment = 6% Insurance = 3.5% Taxes = 5% Calculate the hourly ownership cost for the third year of operation using: a) SOYD method of depreciation b) Stright-line method of depreciation

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