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You have been asked to give an economical assessment based on ownership cost and operating cost (S/hr) of a loader with the purchase price of

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You have been asked to give an economical assessment based on ownership cost and operating cost (S/hr) of a loader with the purchase price of S350000. Using straight line depreciation method, the machine is expected to be used for 5 years and is expected to be sold for $60000 at the end of the Sth year. A set of tires for this loader, which should give 3000 hrs of service, cost $36000. The annual cost of repairs equals 75% of the straight-line machine depreciation. Tire repair is 16% of tire depreciation. The loader is expected to work 1500 hrfyr. The oil consumption of the loader is 0.237gal/hr and fuel consumption of the loader is 7.215gal/hr oil is $3.00/gal and fuel cost $1.15/gal. The cost of other lubricants and filters is $0.65/hr. The annual interest rate is 7%. a) What is the cost per hour of owning the loader? Ihr (keep 2 decimal places) b) What is the hourly repair cost of the loader? thr (keep 2 decimal places) c) What is the hourly cost of the tire repair and replacement(s)? /hr (keep 2 decimal places) d) What is the total hourly cost of operating this loader? Vhr (keep 2 decimal places) S S $

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