What factors do you guys consider when you determine your ownership cost for equipment? I usually include the “rental” rate = purchase price – value of any wear items (tires/tracks/cutting edges/teeth/etc) – salvage value / # hours expected to get out of it. I also include the interest that will be paid from financing it divided by the number of hours expected, and any taxes if applicable. Does anyone make consideration for the time value of money, return on investment, discount for tax write offs, or anything else?
http://www.constructionequipment.com/ has some pretty good articles if you search through the archives on equipment cost. I have a spread sheet somewhere Ill try to dig up but I probably wont be able to post it up till next week