A bulldozer is purchased for Rs.30,00,000/- It has a useful life of 10 years at the end of which salvage value is Rs. 5,00,000/- It has a horse power of 150 and runs on a diesel engine.
Cost of diesel is Rs.60/- per litre. Consider 20% of average investment cost towards financing, taxes and insurances. The machine works for 3000 hours in a year.
The maintenance and repair cost is 50% of depreciation. Consider lubricant cost as 20% of fuel cost. The operating factor is 0.8. The operators monthly salary is Rs. 5000/-. Consider field repair and servicing cost as 30% of depreciation cost.
What are the different factors for selection of construction equipments?