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School Project- Bobcat A770

Discussion in 'Heavy Equipment & Pavement' started by kreft, Apr 21, 2011.

  1. kreft

    kreft LawnSite Bronze Member
    Posts: 1,645

    Hey guys I need your help,

    I have to do a business proposal for school, so I was considering convincing the greens committee of a golf course to buy the new bobcat A770.

    I was wondering if you guys knew any formula's to figure out any depreciation values?

    And how many man hours this machine will save?

    I'm gonna focus on the minimal turf disturbance this machine puts out for the focus of my speech and how its better on tires, blah blah blah

    Any other idea's are greatly appreciated.

    I also need 3 sources for my speech. One will be bobcat.com another will be a sale's representitive at my local dealer, and i need one more, any suggesstions?

    Thanks ya'll
  2. 5speedpsd

    5speedpsd LawnSite Member
    from NWCT
    Posts: 55

    Depends if you want to do a straight line depreciation or not. A straight line depreciation is the easiest to figure out. Figure out what the life of the machine is which your dealer should be able to give you and the salvage value which is the value of the machine when done. Subtract your salvage value from your initial purchase price. then figure out how long the life of the machine is and divide 1 by the number of years it will be in service. multiply that number by the number from before.
    so like this:L is the length of ownership
    Say they bought the skidsteer for $40,000 and in 5 years it could be sold for $10,000(yes i know these numbers are incorrect)
    the way to find depreciation is (1/5)(30,000)=$6,000 per year.
    this is the easiest way to do it. There are many ways to do this if you want I can send you more information on the subject as I just took a course at school last semester on the subject. Send me a PM if you want, hope this helped.
  3. kreft

    kreft LawnSite Bronze Member
    Posts: 1,645

    That does help, thanks.

    Any other thoughts or suggestions on the topic?
  4. SellingIron

    SellingIron LawnSite Senior Member
    from FTE
    Posts: 661

    Where is Dig on this one.. This is his calling!!!!!!!
  5. 5speedpsd

    5speedpsd LawnSite Member
    from NWCT
    Posts: 55

    you can also find what the cost per hour of maitnance of the machine is. Little harder to figure out but it is still somewhat simple if interested in this let me know and ill send it to ya.
  6. kreft

    kreft LawnSite Bronze Member
    Posts: 1,645

    im interested!
  7. kreft

    kreft LawnSite Bronze Member
    Posts: 1,645

    Just got a quote for a bobcat A770,

    Base Model-48,000 +tax
    Cab/heat-53,000 +tax

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