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%
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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)
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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
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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%
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