Equipment Cost
- purchase expense
- salvage value
- tax savings from depreciation
- major repairs and overhauls
- property taxes
- insurance
- storage
Depreciation can be calculated several ways, the simplest is the straight-line method. The annual depreciation is constant, reducing the equipment value annually. The following are simple equations paraphrased from the Peurifoy & Schexnayder text:
|
m = some year in the future N = equipment useful life (years) and Dn = Annual depreciation amount
Book value (BV) in year m
|
example: N = 5 purchase price = $350,000 m = 3 years from now
|
Read more about this topic: Heavy Equipment (construction)
Famous quotes containing the words equipment and/or cost:
“Dr. Scofield’s equipment, which you have just seen, radiated waves direct to Professor Houghland’s laboratory. When these waves came in contact with those the professor’s equipment was radiating, they created the interstellar frequency, which is the death ray.”
—Joseph O’Donnell, and Clifford Sanforth. Arthur Perry (Bela Lugosi)
“Oh high is the price of parenthood,
And daughters may cost you double.
You dare not forget, as you thought you could,
That youth is a plague and a trouble.”
—Phyllis McGinley (20th century)