- B Assume That The Following Construction Equipment Plants Will Be Used For Site Formation Plants Purchase Salvage Us 1 (42.95 KiB) Viewed 22 times
b. Assume that the following construction equipment (plants) will be used for site formation: Plants Purchase Salvage Usage Age of Pieces price value life the plant required for this project Excavator 1,200,000 12,000 6 14 1 months Truck 400,000 30,000 6 26 3 months Bulldozer 600,000 60,000 8 26 1 months Compactor 500,000 40,000 6 25 1 months
Further assumptions are shown below: The project requires 120 days to complete; The other ownership costs (other than depreciation) and operating costs of the plants are 2.5 times of the plant depreciation calculated by the sum-of-the-year method (Assume that the depreciation amount is the same for all the months in a same year. For example, if the annual depreciation amount is 12,000, then the monthly depreciation amount for that year is 1000 per month, or daily depreciation amount for that year is 12,000/365 per day). You are asked to answer the following questions: (1) Calculate the daily depreciation amount for each plant during the project period (6 marks). (2) Assume that cost of purchasing the soil is 20 dollar/ m³ and labour cost is already considered in the operating costs of the plants. Estimate the direct costs of the earthmoving project in the unit of dollar/ m³ of compacted soil (7 marks).