Research Article
Jan 1968
Optimum Life of Equipment for Maximum Profit
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VIEW THE REPLYPublication: Journal of the Construction Division
Volume 94, Issue 1
Abstract
Equipment costs are one of the contractor's largest expenses. The correct determination of equipment life is fundamental to lower costs and higher profits. A mathematical model has been developed by the writer to aid the equipment owner in the economic analysis of his equipment problems. Equations are used to define the shape of the revenue and cost curves of construction equipment and combined in a program run on a digital computer. The computer plots a curve showing the relationship of the present worth of profits after tax to the life of the equipment. This technique provides a powerful analytic tool to aid the equipment owner in determining the economic life of his equipment.
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Published In
Journal of the Construction Division
Volume 94 • Issue 1 • January 1968
Pages: 41 - 54
Copyright
© 1968 American Society of Civil Engineers.
History
Published in print: Jan 1968
Published online: Feb 11, 2021
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Authors
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James Douglas, F.ASCE
Assoc. Prof. of Civ. Engrg., Stanford Univ., Stanford, Calif.
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ASCE Library Cards let you download journal articles, proceedings papers, and available book chapters across the entire ASCE Library platform. ASCE Library Cards remain active for 24 months or until all downloads are used. Note: This content will be debited as one download at time of checkout.
Terms of Use: ASCE Library Cards are for individual, personal use only. Reselling, republishing, or forwarding the materials to libraries or reading rooms is prohibited.
Terms of Use: ASCE Library Cards are for individual, personal use only. Reselling, republishing, or forwarding the materials to libraries or reading rooms is prohibited.