| Determining Machine and Capital Equipment Charge-Out Rates Using Discounted Cash-Flow Analysis Contributor(s): United States Department of Agriculture (Author) |
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ISBN: 1508439958 ISBN-13: 9781508439950 Publisher: Createspace Independent Publishing Platform OUR PRICE: $15.19 Product Type: Paperback Published: February 2015 |
| Additional Information |
| BISAC Categories: - Reference |
| Physical Information: 0.07" H x 8.5" W x 11.02" (0.24 lbs) 36 pages |
| Descriptions, Reviews, Etc. |
| Publisher Description: The model ChargeOut was developed to determine charge-out rates or rates of return for machines and capital equipment. This paper introduces a costing methodology and applies it to a piece of capital equipment. Although designed for the forest industry, the methodology is readily transferable to other sectors. Based on discounted cash-flow analysis, ChargeOut provides more accurate financial outputs than traditional single-period models. ChargeOut produces a break-even charge-out rate that will return any specified after-tax real rate of return over the economic life of the capital equipment. Alternatively, given a negotiated charge-out rate, the model produces net present values and real and nominal rates of return before tax and financing, before tax, and after tax. It also compares the negotiated charge-out rate with the calculated break-even rate, incorporates inflation, accounts for depreciation, and automatically conducts a sensitivity analysis. Graphs illustrate the major cost centers and cash flows. |