Question

The purchase price of a self-propelled combine is US $150,000, and has an expected economic
life of 10yr with a salvage value of 10% of the purchase price. At the time of purchase, the
prevailing interest rate is 10 %, while the general inflation rate is 8 %. The combine is used at an
average of 10-hr per day and 200 hr per year to harvest maize. The 120 kW engine produces 95
kW of power during combining. Diesel fuel costs $0.30/L, while motor oil costs $1.05/L and labour
costs are $6.00 per hour.
(a)Calculate the total operating costs per hectare excluding timeliness costs; the timeliness penalty
costs, and the total costs per hectare. From the tables, RF1 is 0.08, RF2 is 2.1, KT is 0.003; pwd is 0.65 at
90% probability level.
b)Determine the optimum capacity for harvesting maize assuming the unit price function is $20,000
per hectare per hour for the combine.​

Answer 1

Answer:

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