CONSTRUCTION SITEWORK & EQUIPMENT

    5. You purchase a twin-engine scraper by borrowing money from a bank. Calculate the hourly ownership costs for the second year of operation of the scraper. The equipment operates 8 hr/day and 250 days/year in average. Use Sum of Year (SOY) depreciation method and the following information: • Initial cost: $186,000 • Tire cost: $14,000 • Estimated life: 5 years • Salvage value: $22,000 • Interest on investment: 8% • Insurance: 1.5% • Taxes: 3% • Storage: 0.5% Page 2 of 5 BCN 3727 CONST. SITEWORK & EQUIPMENT SPRING 2021 6. Calculate hourly repair cost given the following information: • Repair factor: 0.9 • Initial cost: $186,000 • Salvage value: $14,000 • Useful life: 10,000 hrs (5 years) Page 3 of 5 BCN 3727 CONST. SITEWORK & EQUIPMENT SPRING 2021 7. Calculate fuel cost for the following loader: • Diesel engine – 105 horsepower • Diesel cost: $1.20/gal • Operating condition: Average Page 4 of 5 BCN 3727 CONST. SITEWORK & EQUIPMENT SPRING 2021 8. Calculate hourly tire costs: • Tire replacement price: $5,000 • Tire life: 3 years (4,500 Hours) • Cost of capital rate: 12% Page 5 of 5