Calculate the hourly owning and operating cost for a 200-hp crawler-type hydraulic excavator bought at $150,000. Assume a salvage value of $25,000. Use Straight-line depreciation method and a 5-yr life. ITS is estimated as 8% of Average Annual Value. Fuel cost is $4.00/gal, and total repair cost for equipment lifetime is estimated as 60% of equipment original price.

In general terms, anything that flows can be termed as a fluid. In other words, a fluid is any substance that cannot resist shear forces and deforms continuously under the application of external shear forces. Fluid materials differ completely from solid…