Question 5 (15 %) (CLO 4: 100%) Calculate the expected hourly owning and operating cost for the second year of operation of a motor grader described below: Equipment price = SR 400,000 VATSR 60000 Transportation - SR 5500 Tire cost-SR 24000 Expected life = 10 years Hours operated = 2300 h/yr Estimated salvage value = SR 45,000 Operator's wage = SR 26.00/h Tire Life 2400 h Cost 1. Depreciation cost 2. Investment, tax, insurance, and storage Total Owning Cost 1. Fuel Cost 2. Service cost 3. Repair Cost 4. Tire Cost Total Operating Cost TOTAL O & O Cost Depreciation method= Double declining balance method Fuel cost SR 0.6/1 Rated horsepower = 470 kW Investment (interest), tax, insurance, and storage rate = 20% Fuel consumption factors = 0.052 //h/kW Service cost factors (% of hourly fuel cost) = 33% Lifetime repair cost (% of initial cost less tires)= 75% Calculation Owning cost SR/h
Question 5 (15 %) (CLO 4: 100%) Calculate the expected hourly owning and operating cost for the second year of operation of a motor grader described below: Equipment price = SR 400,000 VATSR 60000 Transportation - SR 5500 Tire cost-SR 24000 Expected life = 10 years Hours operated = 2300 h/yr Estimated salvage value = SR 45,000 Operator's wage = SR 26.00/h Tire Life 2400 h Cost 1. Depreciation cost 2. Investment, tax, insurance, and storage Total Owning Cost 1. Fuel Cost 2. Service cost 3. Repair Cost 4. Tire Cost Total Operating Cost TOTAL O & O Cost Depreciation method= Double declining balance method Fuel cost SR 0.6/1 Rated horsepower = 470 kW Investment (interest), tax, insurance, and storage rate = 20% Fuel consumption factors = 0.052 //h/kW Service cost factors (% of hourly fuel cost) = 33% Lifetime repair cost (% of initial cost less tires)= 75% Calculation Owning cost SR/h
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