question archive Calculate the hourly ownership and operating cost of a wheel-type scraper that has the following characteristics: • Total initial cost = $550,000 (including tires) • Useful life of the scraper = 10 years • Salvage value of the scraper = $0 • Hours scraper used/year = 2,000 hours • Cost of tires = $20,000 • Useful life of tires = 4,000 hours • Annual tire repair cost = 15% of tire depreciation (assume straight line depreciation) • Annual interest, insurance, and tax costs = 12% of Average Annual Value • Annual cost for fuel, oil, grease and other oils = 4% of Average Annual Value Operating Conditions = Average $/hour Ownership Cost Depreciation cost using the current approach (MACRS) (calculate S/hour for each year) Interest, insurance, and tax (IIT cost) Operating Cost Cost of tires Tire repair cost Fuel, oil, grease (FOG), and other oils Scraper repair cost $/hour
Calculate the hourly ownership and operating cost of a wheel-type scraper that has the following characteristics: • Total initial cost = $550,000 (including tires) • Useful life of the scraper = 10 years • Salvage value of the scraper = $0 • Hours scraper used/year = 2,000 hours • Cost of tires = $20,000 • Useful life of tires = 4,000 hours • Annual tire repair cost = 15% of tire depreciation (assume straight line depreciation) • Annual interest, insurance, and tax costs = 12% of Average Annual Value • Annual cost for fuel, oil, grease and other oils = 4% of Average Annual Value Operating Conditions = Average $/hour Ownership Cost Depreciation cost using the current approach (MACRS) (calculate S/hour for each year) Interest, insurance, and tax (IIT cost) Operating Cost Cost of tires Tire repair cost Fuel, oil, grease (FOG), and other oils Scraper repair cost $/hour
Subject:EconomicsPrice: Bought3
Calculate the hourly ownership and operating cost of a wheel-type scraper that has the following characteristics: • Total initial cost = $550,000 (including tires) • Useful life of the scraper = 10 years • Salvage value of the scraper = $0 • Hours scraper used/year = 2,000 hours • Cost of tires = $20,000 • Useful life of tires = 4,000 hours • Annual tire repair cost = 15% of tire depreciation (assume straight line depreciation) • Annual interest, insurance, and tax costs = 12% of Average Annual Value • Annual cost for fuel, oil, grease and other oils = 4% of Average Annual Value Operating Conditions = Average $/hour Ownership Cost Depreciation cost using the current approach (MACRS) (calculate S/hour for each year) Interest, insurance, and tax (IIT cost) Operating Cost Cost of tires Tire repair cost Fuel, oil, grease (FOG), and other oils Scraper repair cost $/hour
