Question: Determine the probable average cost per hour over the life of the equipment for owning and operating a wheel loader under the conditions listed below. Use the straight line method of depreciation
- Operator cost = $20.001h
- Operating conditions = average
- Delivered price = $70,000
- Cost of a set of tires = $4000
- Expected loader life = 5 years
- Hours operated = 2000 h/ye
- Fuel cost = $l.OO/gal ($0.26/C)
- Loader horsepower = 120 hp (89.5 kW)
- Rate for interest, tax, insurance, and storage = 15%.