Instructions: You will use the supplied CAT Hourly Owning and Operating Cost Estimate Form to complete and submit this work (The form has been uploaded on Folio)

2. Below, find two pieces of construction equipment: one crawler machine and one wheeled machine.

3. Use one vertical column in the CAT form for one machine (i.e., you only need to complete the very right two columns of the form: Estimates #1 and #2. There is NO need to provide your calculations in separate sheets.

Additional Notes:

- Use the CAT manual as a major reference for this assignment.

- You may have to use this CAT O&O Cost Estimate form in completing your term project later. Therefore, it is important that you learn and understand how to use this tool to calculate your projects O & O rates.

CRAWLER (Track-Type) MACHINE Model:

CAT 320D Excavator Planned monthly utilization: 125 hours Number of months you plan to use the machine: 12 months Ownership usage (total years): 8 years Delivered price: $ 157,200 Residual value: 35% of the purchase price Interest rate: 12%, Insurance: 1%, Property tax: 1% Fuel unit price: $2.20 / gal Fuel consumption: Use the average value of the Medium range in the CAT manual. Planned maintenance: $2.50 / hr Repair cost: $8.62 / hr Job condition to estimate the undercarriage hourly cost: Moderate for all multipliers (I, A, and Z) Special item1: Bucket penetration tips replacement, 3 tips and $150 / each tip, after 300 hours of usage Special item2: Ripper shank replacement, $510 per set, after 600 hours of usage Operators wage including fringe benefits: $32.00 / hr.

WHEEL-Type MACHINE Model:

CAT 14M Motor Grader Planned monthly utilization: 150 hours Number of months you plan to use the machine: 12 months Ownership usage (total years): 6 years Delivered price: $ 236,800 Residual value: 30% of the purchase price Cost per tire: $ 1,100 (Note that this machine requires six tires.) Interest rate: 10%, Insurance: 1%, Property tax: 1% Planned maintenance: $2.30 / hr Repair cost: $4.35 / hr Fuel unit price: $2.20 / gal Fuel consumption: Use the average value of the Medium range in the CAT manual. Job condition to estimate the tire life: Use the average life of Zone B. Special items: Moldboard edge replacement, $800 after 600 hours of usage Operators wage including fringe benefits: $32.00 / hr