The above vehicle has a purchase price of $450,000 (without tires), and it will have a salvage value of $40,000 and a useful life of 9 years. The tires cost $25,000 and have a useful life of 4,800 hours with no salvage value and a disposal cost of $1,000 per four-tire set. The tractor has a crank case capacity of 10 gallons. The owner pays 4 percent interest on the vehicle, with a 5 percent risk addition, and 5 percent taxes and insurance. Assume that maintenance and repairs will be equal to half of the straight-line depreciation. Assume that the vehicle will be operated 1,600 hours per year. Diesel fuel cost is $3.50 per gallon, and oil is $6 per gallon. Grease is $2 per pound. Fuel is consumed at the rate of 0.04 gal per FWHP-hour. Oil is consumed at a rate of: FWHPxfx0.0061b /(FWHP hr) q= + 7.4lb/gal t Where q is the use rate in gal/hr, f is the operating factor, c is the crank case capacity, and t is the interval between oil changes in hours (take t=200 hours). Grease is consumed at a rate of 0.5 lb/hr. The operator costs $80/hour loaded (including salary, fringes, payroll taxes). Determine the following: a. The hourly cost of ownership. b. The hourly cost of operation. c. The annual total cost (ownership + operation). The unit cost of production ($/bank cubic yard) based on productivity rates from (1)