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You have been asked to give an economical assessment based on ownership cost and operating...

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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 $330000. Using straight line depreciation method, the machine is expected to be used for 6 years and is expected to be sold for $55000 at the end of the 6th year. A set of tires for this loader, which should give 3000 hrs of service, cost $35000. The annual cost of repairs equals 70% of the straight-line machine depreciation. Tire repair is 17% of tire depreciation. The loader is expected to work 1500 hr/yr. 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 6%. a) What is the cost per hour of owning the loader? $ thr (keep 2 decimal places) b) What is the hourly repair cost of the loader? $ Vhr (keep 2 decimal places) c) What is the hourly cost of the tire repair and replacement(s)? (disregard the salvage values of the tires) Vhr (keep 2 decimal places) d) What is the total hourly cost of operating this loader (calculate operation cost only)? $ Vhr (keep 2 decimal places)

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