Example

Contractor has purchased a whecled loader for $$114,000$ and plans to use it about $2,000$ hours per year.

$-$Salvage value of $$35$;$000$ at the end of the sixth year.

Four set of tires cost $$4,000.$

$-$Loader has Horsepower of $105.$

Operator wage is $$\frac{34}{h}r.$

Diesel fuel cost of $$1\mathrm{.}2$gal.

$-$Rate of return of $12\%$

$-$Required: what are the contractor's hourly ownership and operating costs? operating factor of $0\mathrm{.}47.$