You are purchasing a bulldozer for $$300,000.$ This dozer will be used for ripping rock. You plan

to keep it for $6$ years and then sell it$.$ You estimate a salvage value of $$80,000.$ Insurance will cost $$8,000/$year paid at the

beginning of the year. Fuel, oil, and grease will cost $$18/$hour $($no TVM adjustment required$).$ You expect to buy a new

set of ripper tips for $$6,000$ after $8,000$ hours. A major maintenance service costing $$10,000$ is required after $6,000$ hours.

You expect to use the dozer $2,000$ hours each year. Your company uses a $5\%$ annual interest rate.

a$.$ Draw the cash flow diagram for this problem $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

b$.$ Which expenses are classified as operating costs?

c$.$ Which expenses are classified as ownership costs?

d$.$ Calculate the operating cost on an hourly basis using the proper time value of money factor$($s$)$