The following information is for a loader. Calculate the owning and operating costs. Determine whether it is better to buy or rent equipment by comparing cost in both cases, Assumptions: Actual cost delivered) $65400 Horsepower rating -210 hp Cost of tires $3500 Salvage or scrap value-$12500 Useful life 8 years or 16,000 hours Total interest-10 percent per year Length of loan-5 years Total insurance, taxes, and storage-7 percent per year Fuel cost-$2.1 per gallon Consumption rate 0.08 gallons per hp per hour Power utilization 65 percent Use factor-68 percent Lubrication 6 quarts oil at $2.25 voiler labor 3 hours labor at $18.50 Lubrication schedule-every 200 hours Life of tires 3700 hours Repair to tires 8 percent of depreciation Repairs to equipment-46 percent over useful life Rental cost for loader $9.82 per equipment work hour Reply Reply al Forward