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You may work in groups or individually for this assignment. Of course, expectations are higher, and mistakes graded less leniently for a group as compared

You may work in groups or individually for this assignment. Of course, expectations are higher, and
mistakes graded less leniently for a group as compared to an individual assignment as more than one
engineer-to-be is assumed to review and approve the work before submission.
You must show your calculations.
A contractor is considering buying a new mobile crane for their construction project. The crane costs
10,000,000TL, where the cost includes the cost of tires (10.120.1221).
a. Calculate the hourly fixed cost of owning/buying a mobile crane by using the procedure
followed by Turkish Ministry of Environment and Urbanism and assuming 8 years of useful
service life and 2,000 hours of work per year, and an interest rate of 8%.
b. Calculate the hourly fixed cost of owning/buying a crane by using the procedure followed by
Turkish Ministry of Environment and Urbanism and assuming 8 years of useful service life
and 2,000 hours of work per year, but by considering the cost of tires separately. Assume
there are 8 tires and a set of tires costs 160,000 TL and can be used for 2 years. Take
maintenance cost as 15% and transportation cost as 5% of depreciation of tire.
c. Calculate the hourly operating cost of owning the loader if the machinery requires 1.20hrs
of operator time and diesel fuel. Also calculate total cost.
d. The contractor wants to carry out a more detailed analysis for total cost with estimated use
conditions and variables as follows: 2,800 hours of work in a year; 45% for interest rate "i";
34.00TLkg for diesel fuel; and consider tires cost separately.
e. If you were in the business of renting out construction machinery, how much would you
charge on a daily basis if you only provided the machinery and not the operating costs, as well
as if you rented the equipment together with labor and fuel costs (lump sum cost to the
renter).
Following data will be needed in your calculations (19.100.1104):
Engine Power =240HP
Diesel Fuel =23.77TLkg
Operator Salary =130.00TL? hour
Diesel Fuel Consumption =0.0855kgHP
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