1. A contractor purchases a tracked loader that has an initial cost of $100,000, a salvage value of $10,000, and an expected life of 5 years. Determine the hourly owning and operating costs for the loader given the following information. Use straight-line depreciation Rated power 300 hp Fuel cost $1.50/gal Load conditions average Operating conditions average Hours operated 2,000 hr/yr High-wear items $1.20/hr Use an average repair cost over the life of the loader Investment, Insurance, & Taxes 18% No storage costs 1. A contractor purchases a tracked loader that has an initial cost of $100,000, a salvage value of $10,000, and an expected life of 5 years. Determine the hourly owning and operating costs for the loader given the following information. Use straight-line depreciation Rated power 300 hp Fuel cost $1.50/gal Load conditions average Operating conditions average Hours operated 2,000 hr/yr High-wear items $1.20/hr Use an average repair cost over the life of the loader Investment, Insurance, & Taxes 18% No storage costs