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A new wheel loader has an initial cost of $900,000 which is depreciated over 7 years using MACRS with half year convention. Repair/maintenance parts and
A new wheel loader has an initial cost of $900,000 which is depreciated over 7 years using MACRS with half year convention. Repair/maintenance parts and labor cost 6.00 $/hr and fuel, fluids, and tires cost 32.50 $/hr. The equipment operator gets paid 25.00 $/hr with a benefit rate of 42%. Assuming the machine is in operation 80 hours per week, 52 weeks per year how much coal will the loader have to load out to cover its operating costs in year 1 if the coal price is 42 $/ton?
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