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NOTE:

An Excel O&O Estimating Form is available, in electronic spreadsheet format, to calculate an Hourly

Owning & Operating Cost Estimate based on the procedure outlined in this section.

The spreadsheet my be accessed via the website at

https://dealer.cat.com

– From the home page, select “Product

Support,” “Equipment Management Solutions,” “Owning & Operating Costs.” Under the heading “Machine

Technical Information,” select “O&O COST ESTIMATING Form.”

HOURLY OWNING AND OPERATING COST ESTIMATE

DATE

_____________

Estimate #1

Estimate #2

A–Machine Designation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

__________

__________

B–Estimated Ownership Period (Years) . . . . . . . . . . . . . . . . . . . . .

__________

__________

C–Estimated Usage (Hours/Year) . . . . . . . . . . . . . . . . . . . . . . . . . .

__________

__________

D–Ownership Usage (Total Hours)(B

×

C). . . . . . . . . . . . . . . . . . .

__________

__________

OWNING COSTS

1. a. Delivered Price (P), to the Customer (including attachments)

__________

__________

b. LessTire Replacement Cost if desired . . . . . . . . . . . . . . . . .

__________

__________

c. Delivered Price LessTires. . . . . . . . . . . . . . . . . . . . . . . . . . . .

__________

__________

2. Less Residual Value at Replacement (S) . . . . . . . . . . . . . . . . . . (___%) __________ (___%) __________

(See subsection 2A on back)

3. a. Net Value to be recovered through work . . . . . . . . . . . . . . .

__________

__________

(line 1c less line 2)

b. Cost Per Hour:

Net Value

____________ (1) __________ (2) __________ . . . . . . . . . . . .

__________

__________

Total Hours

4. Interest Costs P(N + 1) + S(N – 1)

×

Simple Int. % Rate

_________________

N = No.Yrs.

2N

_____________________________________ =

Hours/Year

+ 1

– 1

+ 1

– 1

(1) _____ + _______

×

___ % (2) _____ + _______

×

___ %

________________________ = ________________________ =

__________

__________

_____ Hours/Yr.

_____ Hours/Yr.

5. Insurance

P(N + 1) + S(N – 1)

×

Insurance % Rate

_________________

N = No.Yrs.

2N

_____________________________________ =

Hours/Year

+ 1

– 1

+ 1

– 1

(1) _____ + _______

×

___ % (2) _____ + _______

×

___ %

________________________ = ________________________ =

__________

__________

_____ Hours/Yr.

_____ Hours/Yr.

(Optional method when Insurance cost per year is known)

Ins. $ __________ PerYr. ÷ __________ Hours/Yr. =

25-2 Edition 47

Owning & Operating Costs

Estimating Form