Question & Answer: A 210 fwhp diesel powered wheeled loader will be used to load stockpiled material. The loader was purchased for $350,000 and is ex…..

A 210 fwhp diesel powered wheeled loader will be used to load stockpiled material. The loader was purchased for $350,000 and is expected to be salvaged at the end of 5 years for $75,000. A set of tires costs $27,000. The company’s cost of capital is 4.5%. The work efficiency will be equivalent to a 50 minute hour. The engine will work at full throttle while loading 35% of the time and at three quarter throttle to travel and dump. The crankcase capacity is 12 gallons and the company changes oil every 120 hours on the job. The annual cost of repairs is 70% of the straight line machine depreciation. Fuel cost is $2.75/gal and oil is $4.15/gal. The cost of other lubricants and filters is $0.85/hr. Tire repair is 20% of tire deprecation. The tires should give 4,000 hours of service. The loaders will work 1,500 hr/yr. In this usage the estimated life for bucket teeth is 150 hours. The local price for a set of teeth is $775. What is the hourly operating cost for the loader?