n marble block quarrying operation, hand rock drills, costing P70,000 each, is used. It has a drilling rate of 15 cm/nmin, produces 30 cubic meters of block per month and consumes 80 liters of diesel fuel for compressor drive, per rock drill per cubic meter produced utilizing 1 worker per drill. A modern equipment quarry bar mounted rock drill is being offered for P180,000 per unit and has a drilling rate of 65 cm/min that will produce 75 cubic meters of block per month, ut consumes135 litersof diesel fuel for the compressor drive per cubic meters of block produced, utilizing 2 workers per quarry bar drill. Considerdiesel fuel at P6.55per liter at quarries, worker earning P375 per day, 22 days per month, 12 years life of both drills with 13% salvage value, 3% annual tax rate, P300 per cubic meter monthly for other expenses and sold at P1,500per cubi meter. Would you recommend the purchase of the new equipment? What is the pay-out period of the better drill?
In marble block quarrying operation, hand rock drills, costing P70,000 each, is used. It has a drilling rate of 15 cm/nmin, produces 30 cubic meters of block per month and consumes 80 liters of diesel fuel for compressor drive, per rock drill per cubic meter produced utilizing 1 worker per drill. A modern equipment quarry bar mounted rock drill is being offered for P180,000 per unit and has a drilling rate of 65 cm/min that will produce 75 cubic meters of block per month, ut consumes135 litersof diesel fuel for the compressor drive per cubic meters of block produced, utilizing 2 workers per quarry bar drill. Considerdiesel fuel at P6.55per liter at quarries, worker earning P375 per day, 22 days per month, 12 years life of both drills with 13% salvage value, 3% annual tax rate, P300 per cubic meter monthly for other expenses and sold at P1,500per cubi meter. Would you recommend the purchase of the new equipment? What is the pay-out period of the better drill?
PP for HAND DRILL: ___years ( 2 decimalplaces)
PP for MOUNTED DRILL: ____years (2 decimal places)
Hand drill or mounted drill:
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