Question
Determine the probable cost per hour for owning and operating a truck with rubber tires after renting it for 6 month with an option to
Determine the probable cost per hour for owning and operating a truck with rubber tires after renting it for 6 month with an option to buy it later. Make use of the following information: Actual truck cost tires cost Engine Crankcase capacity Hours between oil changes Operating factor Useful life Operating hours per year Rental period Rental charges per month $50000 $10000 160 hp 60 liter 80 hr 50% 6 years 2000 6 months $2500 Tires useful life Maintenance for truck (60% of truck's Depreciation) Maintenance for tires (15% of tires' Depreciation) Investment (12% of Average Value) Cost of fuel per liter Cost of oil per liter 5000 hr 0.25 $/liter 1.50 $/liter
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