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A 265-fwhp diesel-powered wheel loader will be used to load shot rock. This loader was purchased for $365000. The loader will work 2000 hour/year for
A 265-fwhp diesel-powered wheel loader will be used to load shot rock. This loader was purchased for $365000. The loader will work 2000 hour/year for 4 years. The estimated salvage value at the end of 4 year is $105000. The company's cost of capital is 7% annually. A set of tires costs $35000 and should give 4000 hours of service. A final set of new tires will not be purchased before the sale. The hourly cost of equipment repair equals $18.28/hour. Fuel, oil, grease, (FOG) and maintenance cost $9.71/operating hour What is the ownership cost (2 points) and operating cost (2 points) per hour of usage for the loader in this application? Ownership cost=$ Vhour Operating cost=$ /hour
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