Problem
A 2654whp diesel-powered wheel loader will be used to load shot rock. This loader was purchased for 5365,000. The estimated salvage value at the end of 4 yr is 5106,000.'11th company's cost of capital Ls 6.4%. A set of tires costs 535,000. The work will be at an efficiency equal to a 50- min hour. The engine will work at full throttle while loading the bucket (30% of the time) and at three-quarter throttle to travel and dump. The crankcase capacity is 12 gal and the company has a policy to change oil every 150 hr on this job. The annual cost of repairs equals 65% of the straight-line machine depreciation. Fuel cost 51.15/gal and oil is 51.00/gal. The cost of other lubricants and filters is 50.65/hr. The repair is 20% of tire depreciation. The tires should give 4,000 hr of service. The loader will work 2,000 hr/yr. In this usage, the estimated life for bucket teeth is 110 hr. The local price for a set of teeth is 5900. What is the operating cost for the loader in this application?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.