A machine cost $45,000 to purchase. Fuel, oil grease, and minor maintenance are estimated to cost $12.34 per operating hour. A set of tires cost $3,200 to replace, and their estimated life is 2,800 use hours. A $6,000 major repair will probably be required after 4,200hr of use. The machine is expected to last for 8,400 hr, after which it will be sold at a price equal to 10% of the original purchase price. A final set of new tires will not be purchased before the sale. How much should the owner of the machine charge per hour of use, if it is expected that the machine will operate 1,400 hr per year? The company’s capital rate is 7%.
A machine cost $45,000 to purchase. Fuel, oil grease, and minor maintenance are estimated to cost $12.34 per operating hour. A set of tires cost $3,200 to replace, and their estimated life is 2,800 use hours. A $6,000 major repair will probably be required after 4,200hr of use. The machine is expected to last for 8,400 hr, after which it will be sold at a price equal to 10% of the original purchase price. A final set of new tires will not be purchased before the sale. How much should the owner of the machine charge per hour of use, if it is expected that the machine will operate 1,400 hr per year? The company’s capital rate is 7%.
Chapter2: Loads On Structures
Section: Chapter Questions
Problem 1P
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Question
A machine cost $45,000 to purchase. Fuel, oil grease,
and minor maintenance are estimated to cost $12.34 per
operating hour. A set of tires cost $3,200 to replace, and
their estimated life is 2,800 use hours. A $6,000 major
repair will probably be required after 4,200hr of use. The
machine is expected to last for 8,400 hr, after which it
will be sold at a price equal to 10% of the original
purchase price. A final set of new tires will not be
purchased before the sale. How much should the owner
of the machine charge per hour of use, if it is expected
that the machine will operate 1,400 hr per year? The
company’s capital rate is 7%.
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