1. Given the following conditions, calculate both the hourly ownership and operating costs: • A $900,000 single-engine scraper will be used 2,000 hours per year under average operating conditions. Tires for the scraper cost $100,000 and they last for 4,000 hours. The scraper will reach the end of its useful life with $150,000 salvage value. Interest (4%), taxes (3%), insurance (2%), and storage (1%). The flywheel horsepower of the scraper diesel engine is 500 HP. Diesel fuel costs $4.0/gallon. Operator wage is $50/hr including fringe benefits.
1. Given the following conditions, calculate both the hourly ownership and operating costs: • A $900,000 single-engine scraper will be used 2,000 hours per year under average operating conditions. Tires for the scraper cost $100,000 and they last for 4,000 hours. The scraper will reach the end of its useful life with $150,000 salvage value. Interest (4%), taxes (3%), insurance (2%), and storage (1%). The flywheel horsepower of the scraper diesel engine is 500 HP. Diesel fuel costs $4.0/gallon. Operator wage is $50/hr including fringe benefits.
Fundamentals Of Construction Estimating
4th Edition
ISBN:9781337399395
Author:Pratt, David J.
Publisher:Pratt, David J.
Chapter9: Pricing Construction Equipment
Section: Chapter Questions
Problem 6RQ
Question
![1. Given the following conditions, calculate both the hourly ownership and operating costs:
•
A $900,000 single-engine scraper will be used 2,000 hours per year under average operating
conditions.
Tires for the scraper cost $100,000 and they last for 4,000 hours.
The scraper will reach the end of its useful life with $150,000 salvage value.
Interest (4%), taxes (3%), insurance (2%), and storage (1%).
The flywheel horsepower of the scraper diesel engine is 500 HP.
Diesel fuel costs $4.0/gallon.
Operator wage is $50/hr including fringe benefits.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F379782e3-36e2-4b06-9a33-e2601af30423%2Ff8e4f128-7a7d-4a8e-9ad4-f2df664866ed%2F34sairp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1. Given the following conditions, calculate both the hourly ownership and operating costs:
•
A $900,000 single-engine scraper will be used 2,000 hours per year under average operating
conditions.
Tires for the scraper cost $100,000 and they last for 4,000 hours.
The scraper will reach the end of its useful life with $150,000 salvage value.
Interest (4%), taxes (3%), insurance (2%), and storage (1%).
The flywheel horsepower of the scraper diesel engine is 500 HP.
Diesel fuel costs $4.0/gallon.
Operator wage is $50/hr including fringe benefits.
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