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A 350-fwhp diesel-powered wheel loader will be used to load shot rock. This loader was purchased for $400,000. The estimated salvage value at the end

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A 350-fwhp diesel-powered wheel loader will be used to load shot rock. This loader was purchased for $400,000. The estimated salvage value at the end of 4 years is $90,000. The company's cost of capital is 7.5%. A set of tires costs $40,000. The work efficiency will be equal to a 50-min hour. The engine will work at full throttle while loading the bucket (33% of the time) and at three-quarter throttle to travel and dump. The crankcase capacity is 12 gal and the company have a policy to change oil every 100 hr on this job. The annual cost of repairs equals 65% of the straight-line machine depreciation. Fuel cost is $2.75/gal, and oil is $4.05/gal. The cost of other lubricants and filters is $0.41/hr. Tire repair is 18% of fire depreciation. The fires should give 3,400 hr of service. The loader will work 1,800 hr/yr. In this usage, the estimated life for bucket teeth is 120 hr. The local price for a set of teeth is $700. A) What is the operating cost for the loader in this application? 20 points B) What If the capital cost goes up to 10.00%? what is the impact over 1000 hrs. of operating in cost? What elements/items of your calculations has been affected? 10 points A 350-fwhp diesel-powered wheel loader will be used to load shot rock. This loader was purchased for $400,000. The estimated salvage value at the end of 4 years is $90,000. The company's cost of capital is 7.5%. A set of tires costs $40,000. The work efficiency will be equal to a 50-min hour. The engine will work at full throttle while loading the bucket (33% of the time) and at three-quarter throttle to travel and dump. The crankcase capacity is 12 gal and the company have a policy to change oil every 100 hr on this job. The annual cost of repairs equals 65% of the straight-line machine depreciation. Fuel cost is $2.75/gal, and oil is $4.05/gal. The cost of other lubricants and filters is $0.41/hr. Tire repair is 18% of fire depreciation. The fires should give 3,400 hr of service. The loader will work 1,800 hr/yr. In this usage, the estimated life for bucket teeth is 120 hr. The local price for a set of teeth is $700. A) What is the operating cost for the loader in this application? 20 points B) What If the capital cost goes up to 10.00%? what is the impact over 1000 hrs. of operating in cost? What elements/items of your calculations has been affected? 10 points

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