A 400-fwhp diesel-powered dozer will be used to support a scraper fleet. This dozer was purchased for $395,000. The estimated salvage value at the end of 4 yr is $105,000. The company's cost of capital is 7.6%. The work efficiency will be equal to a 50-min hour. The engine will work at full throttle while push loading the scrapers (59 % of the time) and at three-quarter throttle to travel and position.( Fuel consumption factor for diesel engine = 0.04gal/hr/hp, and Fuel cost $1.03/gal). the total operational cost for fuel will be:- %3D

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A 400-fwhp diesel-powered dozer will be used to
support a scraper fleet. This dozer was purchased
for $395,000. The estimated salvage value at the
end of 4 yr is $105,000. The company's cost of
capital is 7.6%. The work efficiency will be equal to
a 50-min hour. The engine will work at full throttle
while push loading the scrapers (59% of the time)
and at three-quarter throttle to travel and
position.( Fuel consumption factor for diesel
engine = 0.04gal/hr/hp, and Fuel cost $1.03/gal).
the total operational cost for fuel will be:-
%3D
Transcribed Image Text:A 400-fwhp diesel-powered dozer will be used to support a scraper fleet. This dozer was purchased for $395,000. The estimated salvage value at the end of 4 yr is $105,000. The company's cost of capital is 7.6%. The work efficiency will be equal to a 50-min hour. The engine will work at full throttle while push loading the scrapers (59% of the time) and at three-quarter throttle to travel and position.( Fuel consumption factor for diesel engine = 0.04gal/hr/hp, and Fuel cost $1.03/gal). the total operational cost for fuel will be:- %3D
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