Find hourly operating cost for first year of life of tractor

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Reference no: EM131497691

Question: Find the hourly operating cost for the first year of life of the tractor of Problem. Use the following additional data.

Rated power = 300 hp (224 kW)

Fuel price = $1.50/gal ($0.396/C)

Load conditions = average

Operating conditions = average

Hours operated = 2000 h/year

Operator cost = $20.001h

Problem: A crawler tractor costs $250,000, has an estimated salvage value of $50,000, and has a 5-year life. Find the annual depreciation and book value at the end of each year using the double-declining-balance method of depreciation.

Reference no: EM131497691

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