Question 5 (15 %) (CLO 4: 100%) Calculate the expected hourly owning and operating cost for the second year of operation of a motor grader described below: Equipment price = SR 400,000 VATSR 60000 Transportation - SR 5500 Tire cost-SR 24000 Expected life = 10 years Hours operated = 2300 h/yr Estimated salvage value = SR 45,000 Operator's wage = SR 26.00/h Tire Life 2400 h Cost 1. Depreciation cost 2. Investment, tax, insurance, and storage Total Owning Cost 1. Fuel Cost 2. Service cost 3. Repair Cost 4. Tire Cost Total Operating Cost TOTAL O & O Cost Depreciation method= Double declining balance method Fuel cost SR 0.6/1 Rated horsepower = 470 kW Investment (interest), tax, insurance, and storage rate = 20% Fuel consumption factors = 0.052 //h/kW Service cost factors (% of hourly fuel cost) = 33% Lifetime repair cost (% of initial cost less tires)= 75% Calculation Owning cost SR/h

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Question 5 (15 %) (CLO 4: 100%)
Calculate the expected hourly owning and operating cost for the second year of operation of a
motor grader described below:
Equipment price = SR 400,000
VATSR 60000
Transportation - SR 5500
Tire cost-SR 24000
Expected life = 10 years
Hours operated = 2300 h/yr
Estimated salvage value = SR 45,000
Operator's wage = SR 26.00/h
Tire Life 2400 h
Cost
1. Depreciation
cost
2. Investment,
tax, insurance,
and storage
Total Owning
Cost
1. Fuel Cost
2. Service cost
3. Repair Cost
4. Tire Cost
Total
Operating Cost
TOTAL O & O
Cost
Depreciation method= Double declining balance
method
Fuel cost SR 0.6/1
Rated horsepower = 470 kW
Investment (interest), tax, insurance, and storage rate =
20%
Fuel consumption factors = 0.052 //h/kW
Service cost factors (% of hourly fuel cost) = 33%
Lifetime repair cost (% of initial cost less tires)= 75%
Calculation
Owning cost
SR/h
Transcribed Image Text:Question 5 (15 %) (CLO 4: 100%) Calculate the expected hourly owning and operating cost for the second year of operation of a motor grader described below: Equipment price = SR 400,000 VATSR 60000 Transportation - SR 5500 Tire cost-SR 24000 Expected life = 10 years Hours operated = 2300 h/yr Estimated salvage value = SR 45,000 Operator's wage = SR 26.00/h Tire Life 2400 h Cost 1. Depreciation cost 2. Investment, tax, insurance, and storage Total Owning Cost 1. Fuel Cost 2. Service cost 3. Repair Cost 4. Tire Cost Total Operating Cost TOTAL O & O Cost Depreciation method= Double declining balance method Fuel cost SR 0.6/1 Rated horsepower = 470 kW Investment (interest), tax, insurance, and storage rate = 20% Fuel consumption factors = 0.052 //h/kW Service cost factors (% of hourly fuel cost) = 33% Lifetime repair cost (% of initial cost less tires)= 75% Calculation Owning cost SR/h
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