11.An excavator has a purchase price of $1,200,000, has a rating of 1,900 KW, an estimated life of 10 years an annual operating usage of 4,000 hours. A return on investment of 10% is required. For the following conditions determine the owning cost, total operating and total cost per operating hour for the excavator. a) b) Fuel cost $1.20/1, load factor 0.5, fuel consumption of 0.3 /kW per hour Lubrication @ 25% of fuel cost Wear cost allowance = $ 19.75 per hour Repair factor of 0.25 x 104, job factor of 1 Major overhaul every 10,000 hours, at 15% of capital cost Maintenance labour costed on maintenance ratio of 1.25 hours/operating hour, personnel costing $45,000/ person year. Single operator required per shift, 3 shifts per day at an operator cost of $98,000 per person year 12.For the project outlined in the Table determine the Net Present Value of the project. The cost of Capital is 8%. Year apital Operating Expenditure Expenditure $ 000's $ 000's |1,000 1,100 1,100 |1,200 |1,400 1,400 1,500 1,500 1,500 1,800 |1,800 Revenue $ 000's 25,000 5,500 8,400 10,400 11,600 12,600 |12,600 10,600 9,600 8,600 8,600 5,800 3 14 15 19 10 11 13.Define the following terms: . b. Indirect costs C. Salvage value d. OPEX Balance sheet f. Debt: equity ratio g. Discount rate h. Inflation i. Internal rate of return j. Net present value k. Opportunity cost 14. Three fans are to be installed at a mine site; one immediately at a price of $560,000, one in five years at an estimated cost of $610,000 and the third in eight years at a cost of $680,000. Determine the total expenditure as a present value if the annual interest rate is 6%.