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You own a site development company and are considering the purchase of a new grader. Since this is your main business, the grader will be used almost every working day. Given the following parameters, calculate the total hourly cost of ownership + operation (not including operator wages) in $ per operating hour. $350,000 Purchase price: Fuel, oil, grease, minor repairs: New tires Total estimated life: $45.87/hour $7,500/set, replaced at years 2.5 and 5 12,000 hours Major repair/overhaul interval $15,000 every 4,000 hours but not at 12,000 hours 8.5% Internal rate of return Salvage value at end of life 18% of purchase price Will be in use 70% of working hours, 5 days per week, 10 hours per day, 50 weeks/yr You own a site development company and are considering the purchase of a new grader. Since this is your main business, the grader will be used almost every working day. Given the following parameters, calculate the total hourly cost of ownership + operation (not including operator wages) in $ per operating hour. $350,000 Purchase price: Fuel, oil, grease, minor repairs: New tires Total estimated life: $45.87/hour $7,500/set, replaced at years 2.5 and 5 12,000 hours Major repair/overhaul interval $15,000 every 4,000 hours but not at 12,000 hours 8.5% Internal rate of return Salvage value at end of life 18% of purchase price Will be in use 70% of working hours, 5 days per week, 10 hours per day, 50 weeks/yr
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Answer Solution i Hourly fuel consumption 4587 New tyres hourly 75005... View the full answer
Related Book For
Management Accounting
ISBN: 9780730369387
4th Edition
Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey
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