please solve the question by using time value method and normal method
A crawler tractor is used about 1,500 hours per year. It cost $150,000 new and has a useful life of 15,000 hours. Estimated salvage value after 15,000 hours of use is $25,000. Minimum attractive rate of return is 10% .
a. What is the hourly ownership cost for the tractor?
b. What do you estimate the hourly maintenance and repair cost to be if the tractor is used for general contracting under average operating conditions?
c. The tractor is powered by a 200-horsepower diesel engine. What do you estimate the hourly fuel cost to be if the tractor is used in unfavorable operating conditions and diesel fuel costs $1.25 per gallon?
d. What do you estimate the hourly cost for filter, oil, and grease to be for the tractor when used in average operating conditions?
Assumption:
operation factor = 0.055
C = 5 gallon
T = 150 hr( Time between changes of oil)
Unit cost of oil = 0.95 $/gallon
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please solve the question by using time value method and normal method
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