PS4-08-solutions - CE166 - Fall 2008 Problem Set 4...

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CE166 - Fall 2008 Problem Set 4 Solutions Page 1 of 3 Professor Arpad Horvath Department of Civil and Environmental Engineering University of California, Berkeley Question 1 Truck Crane Purchase Rate 6% Year Expenses Income End of Year Subtotal End of Year Interest End of Year Balance 1 $215,000 $115,000 ($100,000) ($6,000) ($106,000) 2 $55,000 $50,000 ($111,000) ($6,660) ($117,660) 3 $60,000 $175,000 ($2,660) ($160) ($2,820) 4 $75,000 $180,000 $102,180 $6,131 $108,311 5 $95,000 $220,000 $233,311 $13,999 $247,310 At the end of Year 5, the contractor will have a profit of $247,310 .
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CE166 - Fall 2008 Problem Set 4 Solutions Page 2 of 3 Professor Arpad Horvath Department of Civil and Environmental Engineering University of California, Berkeley Question 2 Truck Crane Owning and Operating Costs Givens Cost delivered (w/ 1st set of tires) $215,000 Tire cost $18,000 Estimated tire life 10,000 hr Estimated life 5 years 2,000 hr/yr Salvage value $20,000 Depreciation method double-declining balance Special items none Investment rate 6% Load conditions
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PS4-08-solutions - CE166 - Fall 2008 Problem Set 4...

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