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285
Inputs:
Interest Rate Labor Rate ( $/hour) Weekly Machine Use (hours) Cost of Downed Machine/Hour (optional) Purchase Price Material Acquisition Time (hours) Installation Time (hours) Training Time (hours) Life of the equipment purchased, years
Sioux Machine
Competitive Brand
128
$45,000
28.50% $40.00 20
$40,000 $35,000
$100 $8,400 4.0 4.0 4.0 20 RESET INPUTS $6,500 4.0 4.0 5.0 10
Competitive Brand
Sioux Machine
Results:
Startup Cost Disposal Cost Number of Breakdowns/Year Annual Costs: Maintenance Cost Preventative Maintenance Breakdown Maintenance Machine Cost $ $ $ $ Total Annual Cost $
Total Life Cycle Cost for period of 20 years (current dollars)
$ $ 1
480.00 400.00
$ $ 4
1,040.00 800.00
Sioux Machine
$ $ $ $ $ $
$2,410
$2,762
$-
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
SAVINGS
**Savings of Choosing a Sioux Machine
$22,240
SIOUX CORPORATION One Sioux Plaza Beresford, SD 57004-1500 Toll-Free: 888-763-8833 Tel: (605) 763-3333 Fax: (605) 763-3334 E-mail: email@sioux.com www.sioux.com Office Hours: 8:00 am 4:30 pm CST, Monday-Friday
Assumptions: *Interest Rates based on prime rate plus 2% * Labor rates include wages, benefits, etc. * Startup Costs include training, acquisition, and installation * Disposal Costs include disposal fees and labor * Number of breakdowns are based on historical Sioux information. Calculated based on usage/week. * Preventative maintenance includes annual parts replacements and labor * Breakdown maintenance is based on average cost per repair. Loss of time due to breakdowns is based off of a 2 day repair period. * Machine costs include cost of machine and interest rate spread across the life of the equipment. * Total Lifecycle cost is the total amount paid over 20 years for all fore mentioned variables. Also takes into account inflation. * Calculations and concepts from McGraw Hill's Engineering Economy written by Leland Blank and Anthony Turquin
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