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Calculate the expected hourly owning and operating cost for the sixth year of the operation of the wheel loader described below. Initial cost: $125,000 Tire

Calculate the expected hourly owning and operating cost for the sixth year of the operation of the wheel loader described below.

Initial cost: $125,000

Tire cost; $18,000

Estimated life: 6 years

Salvage value: $11,460.89

Depreciation method: Double-Declining Balance Method

Investment cost for the 6th year: %17.6 of Initial cost

Tax, insurance and storage cost for the 6th year: %7 of book value

Operating conditions: Average

Rated power: 477 hp

Fuel price: $1.048/litre

Operators wages: $12.00

Operating hours: 6 days a week and 10 hours per day

*Note: Equipment remains idle for 42 days during the year!

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Calculate the expected hourly owning and operating cost for the sixth year of the operation of the wheel loader described below. Initial cost: $125,000 Tire cost; $18,000 Estimated life: 6 years Salvage value: $11,460.89 Depreciation method: Double-Declining Balance Method Investment cost for the 6th year: %17.6 of Initial cost Tax, insurance and storage cost for the 6th year: %7 of book value Operating conditions: Average Rated power: 477 hp Fuel price: $1.048/litre Operator's wages: $12.00 Operating hours: 6 days a week and 10 hours per day *Note: Equipment remains idle for 42 days during the year

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