Components of ownership

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The IIT components of ownership cost based on average annual value are: Tax-3%, Insurance -4%, and Interest-7%.

a) What is the average annual value?

b) What cost per hour of operation would you charge to cover IIT, assuming 2,000 hours of operation every year.

c) What is the hourly tire cost, assuming a tire service life of 4,000 hours?

d) What is the estimated hourly repair cost assuming it is Caterpillar track-type tractors?

Reference no: EM1382245

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