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Calculate the total hourly owning and operating cost including operator's wage for the second year of operation of the twin engine scraper described below. Purchase

Calculate the total hourly owning and operating cost including operator's wage for the second year of operation of the twin engine scraper described below.

Purchase price: $152,000 Tire cost: $12,000 Tire life: 5,000 hrs Salvage Value: $16,000 Estimated life: 5 years Depreciation method: Straight line Hours used per year: 2,000 hrs Operating engineer: $36.19/hr Invest rate: 10% Tax/Insurance/Storage Rate: 8% Maintenance and Repairs: 50% of Depr. Operating Factor: 0.80 Scraper Horsepower: 465 hp Fuel Consumption factor: 0.06gal/hp-hr Fuel Price: $4.00/gal Oil and Lube Cost: 33% of fuel

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