Intermediate Equipment Handbook
Intech Associates
COST CALCULATION
Small Rural Vehicle (SRV)
Continued
SHEET 3 OF 3
WORKING SHEET
CONVERSION TO ADJUSTED DAILY CHARGE RATE
INTEREST RATE ASSUMED (Sheet 2)
OWNERSHIP COSTS
%
C ADJUSTMENT FOR ACTUAL COST OF PURCHASE
Selected Depreciation/replacement charge (US$/day) from Table A1
Selected Finance charge (US$/day) from Table B1, B2 or B3 (or interpolation)
Actual purchase/replacement cost in US$
DAILY OWNERSHIP COST = (C1 + C2) x C3 / 4,000 =
(C1)
(C2)
(C3)
US$/day
Local currency
(C)
D ADJUSTMENT FOR EXPECTED RESIDUAL/SCRAP VALUE (IF ANY)
Assumed Residual/Scrap Value in US$
Assumed Economic Life in years
Assumed Utilisation in Days / Year
(D1)
(D2)
(D3)
ADJUSTMENT FOR RESIDUAL/SCRAP VALUE = D1 / (D2 x D3)
US$/day
SUB-TOTAL FOR OWNERSHIP COSTS = (C) - (D)
OPERATING COSTS
Local currency
(D)
(W)
E SPARES & CONSUMABLES
Either predict daily costs from past records or select from the following:-
Select percentage of spares and consumables per year compared to machine current cost new,
Suggested value between 2 and 10% of cost new (usually increases with age)
% (E1)
DAILY COST OF SPARES = 0.01 x C3 x E1 / D3
US$/day
Local currency
(E)
F SERVICING AND REPAIR (WORKSHOP LABOUR COSTS)
Either predict daily costs from past records or select from the following:-
Suggested value between 20% and 100% of (E)
DAILY WORKSHOP LABOUR COSTS = 0.01 x E x F1
% (F1)
US$/day
Local currency
(F)
G FUEL & LUBRICANTS
Cost of fuel per litre (add between 2 and 5% to cover lubricant costs)
Assumed fuel consumption in litres per day
DAILY FUEL COST = G1 x G2
(G1)
(G2)
US$/day
Local currency
(G)
H OPERATORS (DAILY COSTS)
Wages Allowances
Operator
Assistant
Other
Other
Sub-totals
US$/day
SUB-TOTAL FOR OPERATING COSTS = (E) + (F) + (G) + (H)
OVERHEADS
Predict from past records to include:-
I Offices, Workshops, Tools & other Facilities
J Supervisory, management and clerical personnel
K Supervision and support vehicles
L Stores and other stock
M Insurances
N Banking and other finance charges not relating to the equipment item
O Administration, training, safety or other overhead costs
P Risk, late payment and other contingency items
Q Taxes, levies etc.
SUB-TOTAL FOR OVERHEADS = Daily allowance for items (I) to (Q)
PROFIT
SUB-TOTAL PROFIT
TOTAL COST TO BE CHARGED = (W) + (X) + (Y) + (Z) =
US$/day
US$/day
US$/day
US$/day
Local currency
(H)
(X)
Local currency
(Y)
Local currency
(Z)
Local currency
NOTES
1 Finance charge (Sheet 2) calculated by the formula:-
C2 = ((N + 1) / 2N) x Purchase Price x interest rate expressed as a decimal
Hours per year
Where N = number of years (economic life)
2 To convert the US$ values to Local Currency multiply by the current exchange rate
October 2012
March 2012
Intech Associates
Ref: SRV-C.xls
58