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You are required to prepare a cost estimation report to determine the total unit cost for plain concrete given the following information: SPECIFICATIONS/ USAGE: Plain

You are required to prepare a cost estimation report to determine the total unit cost for plain concrete given the following information:

  1. SPECIFICATIONS/ USAGE:
  • Plain concrete (PC) quantity = 2500 m3.
  • Propose the concrete mix and based on your proposal, perform the cost estimation.
  • The concrete will be used for a warehouse base, the main usage of this warehouse is a construction materials storage location.
  • Total duration is 30 days.

  1. EQUIPMENT
  • Pump

Purchase price (P) of Pump = $420,000

Salvage value (F) Pump = $250,000

Useful life (N) = 2 years

Working hours per year = 1800

Maintenance and repair costs = 110% of annual depreciation

Interest rate (i) = 10%

  • Truck mixer

Purchase price (P) of Truck mixer = $300,000

Salvage value (F) Pump = $200,000

Useful life (N) = 2 years

Working hours per year = 1800

Maintenance and repair costs = 90% of annual depreciation

Interest rate (i) = 15%

  • Concrete Vibrator

Purchase price (P) of Concrete Vibrator = $5,000

Salvage value (F) Pump = $100

Quantity = 5

Useful life (N) = 2 years

Maintenance and repair costs = 120% of annual depreciation

Interest rate (i) = 2%

  • Extra tools\ equipment (Assumed)

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