What is the annual cost of ownership of 4 scaper haulers, 3 bulldozers, and 2 mo

Question

What is the annual cost of ownership of 4 scaper haulers, 3 bulldozers, and 2 motor graders if the annual interest rate is 3.5% Purchase price scaper hauler $2,145,669 Purchase price bulldozer $1,234,756 Purchase price motor grader $986,758 The contractor put 10% down upon purchase The contractor will hold the equipment for 8 years Salvage value of the scaper hauler $500,456 Salvage value of the bulldozer $346,798 Salvage value of the motor grader $260,443 Annual O&M cost for the scraper hauler $86,367 Annual O&M cost for the bulldozer $93,387 Annual O&M cost for the motor grader $76,854

Explanation / Answer

Purchase price scaper hauler Purchase price bulldozer Purchase price motor grader $2,145,669 $1,234,756 $986,758 4 3 $8,582,676 $3,704,268 $1,973,516 2 10% down purchase 858,267.60 370,426.80 197,351.60 equipment life 8 years Salvage value $500,456 $346,798 $260,443 Salvage value per year 62557X4 = 250,228 43349.75X3 = 130,049.25 32555.37X5= 162,776.85 Annual O&M cost 86367X4 = 345,468 93387X3 = 280,161 76854X2 = 153,708 Purchases on loans $7,724,408.40 3,333,841.20 1,776,164.40 annual interest 3.50% 3.50% 3.50% Loan amount 10,171,570.79 4,390,032.22 2,338,869.33 Per year cost of loan purchases 1,271,446.34 548,754.02 292,358.66 annual cost of ownership = initial purcashes + loan purchases per year + annual maintenance cost - salvage value per year Annual cost of ownership scaper hauler Annual cost of ownership bulldozer Annual cost of ownership motor grader 2,224,953.94 1,069,292.57 480,641.41

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