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tractor value formula
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Posted by mikeinWA on May 16, 2005 at 11:30:24 from (207.118.9.116):
Years ago an old logger presented me with a formula to gauge wether or not you got your monies worth out of a used vehicle. He figured it at 10 cents per mile add repair costs. For example: my old pickup
paid-1700.00
brakes etc over the years-1000
heads-300
maint-1500
total=$4500.00
mileage to break even=45,000 Has anyone developed a similar formula to rough out the value of tractors? I farm for a living. Granted it is a small farm by comparison, but I cannot always afford to be attached personally to a piece of equipment. In other situations there exist helpful formulas for making good business decisions. Any number crunchers or brainy farmers willing to take a crack at developing something? I would think something like:
(Hp x hrs x X)+ repair&maint = value
Where X is a reasonable value of Hp/hrs
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