In marble block quarrying operation, hand rock drills, costing P70,000 each, is used. It has a drilling rate of 15 cm/min, produces 30 cubic meters of block per month and consumes 80 liters of diesel fuel for compressor drive, per rock drill per cubic meter produced utilizing 1 worker per drill. A modern equipment quarry bar mounted rock drill is being offered for P180,000 per unit and has a drilling rate of 65 cm/min that will produce 75 cubic meters of block per month, but consumes 135 liters of diesel fuel for the compressor drive per cubic meters of block produced, utilizing 2 workers per quarry bar drill. Consider diesel fuel at P6.55 per liter at quarries, worker earning P375 per day, 22 days per month, 12 years life of both drills with 13% salvage

In marble block quarrying operation, hand rock drills, costing P70,000 each, is used. It has a drilling rate of 15 cm/min, produces 30 cubic meters of block per month and consumes 80 liters of diesel fuel for compressor drive, per rock drill per cubic meter produced utilizing 1 worker per drill. A modern equipment quarry bar mounted rock drill is being offered for P180,000 per unit and has a drilling rate of 65 cm/min that will produce 75 cubic meters of block per month, but consumes 135 liters of diesel fuel for the compressor drive per cubic meters of block produced, utilizing 2 workers per quarry bar drill. Consider diesel fuel at P6.55 per liter at quarries, worker earning P375 per day, 22 days per month, 12 years life of both drills with 13% salvage

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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