For the equipment below, figure out the tire operating cost ($/hour) using time value method. Actual cost (delivered) $62,000 including tires Horsepower rating-200 hp Cost of tires-$6,000 Salvage value-$2,400 Useful life-6 years at 1,400 hours per year Total interest -7 percent per year Power utilization-85 percent Use factor-40 minutes per hour (66.67 percent) Life of tires-1.500 hours Repair to tires-21 percent of tire deprecation Repairs to equipment-120 percent of purchase price without tires TABLE 2.1 Economic analysis relationships Name Converts Icon Formula Symbol SPCAF given P to F (F/P, i%, n) (1 + i)" Single payment compound amount factor Present worth compound amount factor PWCAF given F to P (P/F, 1%, n) 1/(1 + i)" USCAF Uniform series compound amount factor given A to F (F/A, i%, n) (1 + )" - 1 i USSFF Uniform series sinking fund factor given F to A (A/F, 1%, n) Uniform series present worth factor USPWF given A to P (P/A, 1%, n) (1+1) - 1 (1 + i)" - 1 (1 + " (1 + i)" " Uniform series capital recovery factor USCRF given P to A (A/P, 1%, n) For the equipment below, figure out the tire operating cost ($/hour) using time value method. Actual cost (delivered) $62,000 including tires Horsepower rating-200 hp Cost of tires-$6,000 Salvage value-$2,400 Useful life-6 years at 1,400 hours per year Total interest -7 percent per year Power utilization-85 percent Use factor-40 minutes per hour (66.67 percent) Life of tires-1.500 hours Repair to tires-21 percent of tire deprecation Repairs to equipment-120 percent of purchase price without tires TABLE 2.1 Economic analysis relationships Name Converts Icon Formula Symbol SPCAF given P to F (F/P, i%, n) (1 + i)" Single payment compound amount factor Present worth compound amount factor PWCAF given F to P (P/F, 1%, n) 1/(1 + i)" USCAF Uniform series compound amount factor given A to F (F/A, i%, n) (1 + )" - 1 i USSFF Uniform series sinking fund factor given F to A (A/F, 1%, n) Uniform series present worth factor USPWF given A to P (P/A, 1%, n) (1+1) - 1 (1 + i)" - 1 (1 + " (1 + i)" " Uniform series capital recovery factor USCRF given P to A (A/P, 1%, n)