Qusetion :

The portable concrete-pumping equipment has a maximum capacity of 195 yd3/hr and is purchased for $1,200,000 delivered cost. IT has a service life of 5 years before the first overhaul, which restores the equipment nearly to its initial performance, and this major maintenance cost is $125,000. The refurbished equipment is eventually sold for 15% of the initial price.

	Table 1. Given information: Life cycle cost information for 195 yd3/hr capacity concrete-pump truck equipment
Serial	Information Element	Amount
A	Equipment Purchase	1,200,000.00
B	Service Life Before First Overhaul	5.00	years
C	Overhaul Cost	125,000.00
D	Remaining Life After Overhaul	4.00	years
E	Concrete Travel And Pumping Operating Hours, Annual	2,600.00	hours
F	Standby Hours, Annual	3,000.00	hours
G	Salvage Value, Percentage If Purchase Cost	15%
H	Periodic And Unscheduled Maintenance Cost, Percentage Of First Cost, Annual	2.50%
I	Spare Parts And Tire Replacement, Annual	10,000.00
J	Gross Hourly Labor Costs (Available During All Standing Hours)	21.00	per hours
K	Diesel Fuel, Oil, And Truck Operating Costs, Annual For 3,000 Hours	45,000.00
L	Cleanup Material (Sacks Of Portland Cement, Etc.), Annual	7,800.00
M	Minimum Attractive Rate Of Return, I$	20%
	Complete the below table (Table 2)
	Table 2. Life Cycle Cost Analysis for 195 yd3/hr capacity concrete-pump truck equipment
Serial	Cost Element and Year	0	1	2	3	4	5	6	7	8	9
1	Equipment Purchase/Operation
2	Labor
3	Equipment Operation
4	Maintenance
5	Spare Parts, Tire Eeplacement
6	Cleanup Material
7	Overhaul
8	Income from Salvage Sale
9	TOTAL
10	(P/F, 20%, n)
11	Discount Annual Value
12	Cummulative Value