You have been asked to give an economical assessment based on ownership cost and operating cost $(\frac{\text{\$}}{h}r$ of a loader with the

purchase price of $$300000.$ Using straight line depreciation method, the machine is expected to be used for $5$ years and is

expected to be sold for $$50000$ at the end of the $5$ th year.

A set of tires for this loader, which should give $3000$ hrs of service, cost $$40000.$ The annual cost of repairs equals $65\%$ of the

straight$-$line machine depreciation. Tire repair is $15\%$ of tire depreciation. The loader is expected to work $1000h\frac{r}{y}r.$ The oil

consumption of the loader is $0\mathrm{.}237ga\frac{l}{h}r$ and fuel consumption of the loader is $7\mathrm{.}215ga\frac{l}{h}r$; oil is $$\frac{3\mathrm{.}00}{g}al$ and fuel cost

$$\frac{1\mathrm{.}15}{?}$ gal. The cost of other lubricants and filters is $$\frac{0\mathrm{.}65}{h}r.$ The annual interest rate is $7\%.$

a$)$ What is the cost per hour of owning the loader?

$$\frac{,}{h}r($keep $2$ decimal places$)$

b$)$ What is the hourly repair cost of the loader?

$$\frac{,}{h}r($keep $2$ decimal places$)$

c$)$ What is the hourly cost of the tire repair and replacement$($s$)?($disregard the salvage values of the tires$)$

$ $\frac{,}{h}r($keep $2$ decimal places$)$

d$)$ What is the total hourly cost of operating this loader $($calculate operation cost only$)?$

$

$/$hr $($keep $2$ decimal places$)$You have been asked to give an economical assessment based on ownership cost and operating cost $($$$/$hr$)$ of a loader with the purchase price of $$300000.$ Using straight line depreciation method, the machine is expected to be used for $5$ years and is expected to be sold for $$50000$ at the end of the $5$th year.

A set of tires for this loader, which should give $3000$ hrs of service, cost $$40000.$ The annual cost of repairs equals $65\%$ of the straight$-$line machine depreciation. Tire repair is $15\%$ of tire depreciation. The loader is expected to work $1000$ hr$/$yr$.$ The oil consumption of the loader is $0\mathrm{.}237$gal$/$hr and fuel consumption of the loader is $7\mathrm{.}215$gal$/$hr; oil is $$3\mathrm{.}00/$gal and fuel cost $$1\mathrm{.}15/$gal$.$ The cost of other lubricants and filters is $$0\mathrm{.}65/$hr$.$ The annual interest rate is $7\%.$

a$)$ What is the cost per hour of owning the loader?

$Answer $1$ Question $8$

$/$hr $($keep $2$ decimal places$)$

b$)$ What is the hourly repair cost of the loader?

$Answer $2$ Question $8$

$/$hr $($keep $2$ decimal places$)$

c$)$ What is the hourly cost of the tire repair and replacement$($s$)?($disregard the salvage values of the tires$)$

$Answer $3$ Question $8$

$/$hr $($keep $2$ decimal places$)$

d$)$ What is the total hourly cost of operating this loader $($calculate operation cost only$)?$

$Answer $4$ Question $8$

$/$hr $($keep $2$ decimal places$)$