01 15 Points Calculate the expected hourly owning and operat

01. (15 Points) Calculate the expected hourly owning and operating cost for the second year of operation of the twin-engine scraper described below 24,000 ID Cos delivered 300,000 D Estimated life 5 ycars Tire Salrage value 30,000 D Depreciation mothodt sum-of-the-years digits Invesment f interest ) rel, \"10% Tas, insarunce, and shruge nar-8% Fuel price 0.40)D/gal Fwel comsamption factor- 0,035 gal/h/hp Service cost factor-33% of hourly fuel cost Roiedl owe465h Eguigpot Repair c R4JDAh

Solution

Owing Cost:

Owing cost=depreciation+investment cost+(insurance,Tax and storaage cost)

depreciation of m year=(Cost delvered -tire cost - salvage)(n-m+1)/(n(n+1)/2)

d₂=(300,000-24000-30000)*4/15=65,600 JD

Depreciation per hour=65600/2000=32.8 JD/h

cost rate=insurance,Tax and storaage + intrest rate=8+10=18%

Average investment=(cost delivered +salvage value)/2=165,000 JD

insurance,Tax and storaage cost=165,000*0.18/2000=14.85 JD/h

Total owing cost=32.8+ 14.85=47.65 JD/h

Operating Cost:

Fuel Cost:

Estimated consumption=0.035*465=16.275 gal/h

Fuel Cost=16.275*0.4=6.51 JD/h

Service cost=0.33*6.51=2.1483 JD

Repair cost=8.4 JD/h

Tire cost:

estimated tire life=3000 h

Tire cost=1.15*24000/3000=9.2 JD/h

Special item cost=none

operator wages=6 JD/h

Total operating cost=6.51+.1483+8.4+9.2+6=32.2583 JD/h

Total O & O cost=32.2583+ 47.65=79.9 JD/h