QUESTION 1 [20 marks] 1.1 Given the information on the Table below. Calculate the average owning and operating costs of the front loader given throughout its expected life. (20) ITEMS COSTS Capital costs R1 300 000 Resale costs R500 000 Interest Rates 10% Depreciation 20% Expected life span 6 years Estimate working hours per year 1800 hours Tyre costs R3 800 per tyre, expected tire life is 3 000 hours Insurance 5.5 % p.a of depreciated value Fuel Consumption 12 litre/hour Fuel Cost R14.50 per litre Lubrication oil, Filters, Labour services R5.00 per hour Estimated repairs R35.00 per hour Replacement of special wear parts R2 000 every 500 hour