Search for question
Question

Question 2 (15 points): Determine the cost of ownership ($/equipment work hour). Use the information provided in the following: Equipment purchase price is $100,000 (loan amount) Tire cost is $2,000

Gas costs are $2.60 per gallon Oil cost for lubrication are $2.00 per quart Insurance, tax and storage are 10% of purchase price Insurance, tax and storage are 10% of purchase price Equipment factor for repairs over life is 75% Salvage value of equipment is 3% of purchase cost Useful life of equipment is 14,000 working hours Life of the loan is 7 years Loan interest rate is 8% per year

Fig: 1

Fig: 2

Fig: 3

Fig: 4

Fig: 5

Fig: 6

Fig: 7

Fig: 8

Fig: 9

Fig: 10

Fig: 11

Fig: 12

Fig: 13