Scribd Logo
Upload

Welcome to Scribd!

  • 83 views

    Machinery Cost Equations

    Uploaded by

    Sooraj Kannan, P.V.
    This document outlines the equations used to calculate machinery costs for tractors, self-propelled equipment, trucks, and implements. It explains that the equations for depreciation, interest, taxes/insurance, repairs, fuel costs, and salvage value are based on studies by the American Society of Agricultural Engineers. The user has the option to enter their own values rather than using the calculated costs.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd

    Machinery Cost Equations

    Uploaded by

    Sooraj Kannan, P.V.
    83 views3 pages
    This document outlines the equations used to calculate machinery costs for tractors, self-propelled equipment, trucks, and implements. It explains that the equations for depreciation, interest, taxes/insurance, repairs, fuel costs, and salvage value are based on studies by the American Society of Agricultural Engineers. The user has the option to enter their own values rather than using the calculated costs.

    Original Description:

    equations for machinery costs

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document outlines the equations used to calculate machinery costs for tractors, self-propelled equipment, trucks, and implements. It explains that the equations for depreciation, interest, taxes/insurance, repairs, fuel costs, and salvage value are based on studies by the American Society of Agricultural Engineers. The user has the option to enter their own values rather than using the calculated costs.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    83 views3 pages

    Machinery Cost Equations

    Uploaded by

    Sooraj Kannan, P.V.
    This document outlines the equations used to calculate machinery costs for tractors, self-propelled equipment, trucks, and implements. It explains that the equations for depreciation, interest, taxes/insurance, repairs, fuel costs, and salvage value are based on studies by the American Society of Agricultural Engineers. The user has the option to enter their own values rather than using the calculated costs.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    Machinery Cost Equations

    Note: the values of the remaining farm value coefficients and the repair coefficients for each piece of equipment can be viewed by selecting "View Repair Factors" from the Help menu. These coefficients are constants which are published in the "Agricultural Engineers Yearbook" and cannot be changed by the user. d1 - remaining farm value coefficient #1 d2 - remaining farm value coefficient #2 r1 - repair coefficient #1 r2 - repair coefficient #2 L - labor multiplier = 1.1 for tractors = 1.2 for other power units F - fuel multiplier = 1.0 for gasoline = 0.73 for diesel years = ownership period + age when purchased Tractors: Costs/Hour salvage value = d1*list price*(d2^years) depreciation = (purchase price - salvage value) /(ownership period * annual use) interest = (purchase price + salvage value) * (interest rate/100) / (2 * annual use) taxes,housing,insurance = (purchase price + salvage value) * (taxes,housing,insurance%/100) / (2 * annual use) repairs & maintenance = list price * r1 * [(annual use*years/1000)^r2] / (annual use * years) fuel cost = F * 0.06 * max pto HP * fuel price lubricant cost = 0.15 * fuel cost labor cost = L * wage Note: the equations for repair and maintenance, fuel costs, and salvage value are based upon studies performed by the American Society of Agricultural Engineers (ASAE Standards, 2000). The user may choose not to use the costs calculated by these equations by unchecking the box below the block in the input screen. In this case, the user must explicitly enter his own values for repair/maintenance, fuel costs, or salvage value. If an implement is also selected: acres/hour = implement speed * implement width * implement field efficiency / 825 cost/acre = (cost/hour) / (acres/hour) for all costs.

    Self-propelled equipment: The equations for self-propelled equipment are the same as those for tractors with two exceptions: There is no equation to estimate fuel costs. Fuel usage must be entered into the input screen. This value is multiplied times fuel price to get fuel cost per hour. Acres/hour is calculated based upon the power unit speed, width and field efficiency. Costs per acre are always calculated. Note: The equations for repair and maintenance, and salvage value are based upon studies performed by the American Society of Agricultural Engineers (ASAE Standards, 2000). The user may choose to not use the costs calculated by these equations by unchecking the box below the block in the input screen. In this case, the user must explicitly enter his own values for repair and maintenance, or salvage value. Trucks: The equations for depreciation, interest, taxes, housing, and insurance, and labor are the same as those for tractors. There are no equations to estimate fuel use and repair costs. The user must enter the values for these costs in the input screen for trucks. hours = annual miles driven / average speed repair and maintenance costs = annual repair costs / hours fuel cost = (annual miles * fuel price) / (fuel use * hours) Costs/mile are calculated by dividing costs/hour by average speed in miles per hour. Costs per acre for trucks are calculated only if miles per acre are provided in the input screen. Note: The equations for repair and maintenance, and salvage value are based upon studies performed by the American Society of Agricultural Engineers (ASAE Standards, 2000). The user may choose to not use the costs calculated by these equations by unchecking the box below the block in the input screen. In this case, the user must explicitly enter his own values for repair and maintenance, or salvage value. Implements: The equations for implements are the same as those for tractors with the following exceptions: Fuel cost = 0 Lubricants = 0 Labor costs = 0 In keeping with ASAE standards, these costs are always assigned to the power unit. If the implement is a wagon, costs/acre are not calculated unless hours per acre are specified in the input screen. Note: The equations for repair and maintenance, and salvage value are based upon studies performed by the American Society of

    Agricultural Engineers (ASAE Standards, 2000). The user may choose to not use the costs calculated by these equations by unchecking the box below the block in the input screen. In this case, the user must explicitly enter his own values for repair and maintenance, or salvage value. Reference: American Society of Agricultural Engineers, "Agricultural Engineers Yearbook, 2000."

    You might also like