Lec.5.solved.pptx - 0931522:Construction Methods Cost Input...

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O 0931522:Construction Methods Owning and perating Costs Introduction At the end of the Equipment Policy presentation, you saw a cost input checklist for establishing hourly equipment costs. You have also seen how the time value of money can impact cost and revenue estimates and how depreciation may be calculated. Now, you are prepared to comprehend how hourly costs for equipment can be established from equipment investment and operations data. Cost Input Checklist Initial cost Expected life Hours operated per year Salvage value Repair costs Horsepower rating Fuel type and cost Operating factor MARR (interest, taxes, insurance, storage, and license costs) Crankcase capacity (lubricating oil) Number of hours between oil changes Cost of lubricants Cost of tires or undercarriage components Life of tires or undercarriage components Cost of operator including fringes Cost of mechanic including fringes 1
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Costing Procedure Ownership cost Givens: purchase price, useful life, salvage value, MARR Investment cost Average investment method
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