Tire cost: $14,000 Estimated life: 5 years; Salvage value: $22,000 Interest on the investment: 8%...

 

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Tire cost: $14,000 • Estimated life: 5 years; Salvage value: $22,000 Interest on the investment: 8% • Insurance: 1.5% ● Calculate the hourly ownership cost for the second year of operation of a 465hp twin-engine scraper. This equipment will be operated 8 h/day and 250 days/year in average conditions. Use the sum-of-years'-digits method of depreciation as the following information: • Initial cost: $186,000 ● 60000 Taxes: 3% Fuel price: $2.00/gal Storage: 0.5% Operator's wages: $24.60/h Tire cost: $14,000 • Estimated life: 5 years; Salvage value: $22,000 Interest on the investment: 8% • Insurance: 1.5% ● Calculate the hourly ownership cost for the second year of operation of a 465hp twin-engine scraper. This equipment will be operated 8 h/day and 250 days/year in average conditions. Use the sum-of-years'-digits method of depreciation as the following information: • Initial cost: $186,000 ● 60000 Taxes: 3% Fuel price: $2.00/gal Storage: 0.5% Operator's wages: $24.60/h

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To calculate the hourly ownership cost for the second year of operation of the scraper we need to consider the following costs 1 Depreciation The annu... View the full answer