EXERCISE 1
1. You are required to analyse and calculate cost of an excavator. Provide cost of
      operating the excavator in 1 hour.
         – Cost of excavator                       RM 350,000
         – Estimated plant maintenance cost        RM 35,000/5yr
         – Duration of use                         5 yr
         – Yearly interest rate                    10%
         – Usage rate in a year                    275 days
         – Operator cost                           RM 40/day
         – Diesel (daily)                          RM 50
         – Grease (daily)                          RM 5
   2. You are required to do an excavation work as part of site clearing activity. The
      excavation should not exceed 300mm depth (average depth is 150mm) for a 900 m2
      field area. Type of soil is sand, and all excavation works to be done manually. If gross
      profit required is 15%, how much cost for the site clearing is needed.
Given information:
       Labour constant
           – Excavation not more than 300mm (average 150mm) - 0.58hr/m2
           – Levelling the excavated level                 0.12hr/m2
           – Discarding excavated materials                1.2hr/m3
           – Daily labour rate                             40.00