|
Maintenance Costs
<br />Based on 3% of Capital Costs
<br />$5,000,000 X ,03 = $ 150,0001yr
<br />Operating Costs
<br />Increased Labor
<br />530,000 X 1.4 = S 42,000/yr
<br />year
<br />Increased Power
<br />50 H,P, X 250 day X 16 hr, X 0,746 K,W.
<br />year day 1 H,P,
<br />X $0,06 = $ 8,952/yr
<br />K,W, hr,
<br />Present Worth Costs
<br />Present Worth Factor = (P/A, 10Y, 15) = 7,606
<br />_ (P/F, lU%, 15) _ ,2394
<br />Present Worth Costs
<br />• $ 5,000,000
<br />- 500,000
<br />(,2394) A 5,000,000
<br />- 119,700
<br />+ 150,000 (7.606} +1,140,900
<br />+ 42,000 (7,606) + 319,452
<br />- 8,952 (7,606) - 68,089
<br />$ 6,272,563
<br />Present Worth Costs = $6,272,5fi3
<br />COMPARISON OF ALTERNATTVES
<br />EXAMPLE
<br />$6,272,563 - 4,031,180 X 100% = 35,7%
<br />6,272,563
<br />This indicates a 35,7% cost savings by using truck haulage ins t.ead
<br />of an overland conveyor.
<br /> EXAMPLE
<br /> DECISION: Condit ions (capital costs, annual cost, tons produced, interest
<br /> rates, contract terms, etc,) must change befo re a new conveyor
<br /> would be cost effective and constructed.
<br /> EXAMPLE CALCIILATION
<br /> Tonnage Level Which Matches Cost of Conveyor and Trucking
<br />' The tonnaye rate at which the present worth costs of the overland conveyor
<br /> system equal the present worth costs of the truck haulage system can be cal-
<br /> culated,
<br />6
<br />
|