NOTE: An Excel O&O Estimating Form is available, in electronic spreadsheet format, to calculate an Hourly Owning & Operating Cost Estimate based on the procedure outlined in this section. The spreadsheet my be accessed via the website at https://dealer.cat.com - From the home page, select "Product Support, "Equipment Management Solutions." "Owning & Operating Costs." Under the heading "Machine Technical Information, select "0&O COST ESTIMATING Form" HOURLY OWNING AND OPERATING COST ESTIMATE DATE Estimate #1 Track Type Estimate #2 Wheel Type A-Machine Designation..... 8 6 B-Estimated Ownership Period (Years). C-Estimated Usage (Hours/Year) 1500 2000 D-Ownership Usage (Total Hours)(B x C).. 7200 7200 OWNING COSTS 1. a. Delivered Price (P), to the Customer (including attachments) 105000 b. Less Tire Replacement Cost if desired ... n/a c. Delivered Price Less Tires... 35000 2. Less Residual Value at Replacement (S) (%) 70000 (See subsection 2A on back) 35000 3. a. Net Value to be recovered through work (line 1c less line 2). b. Cost Per Hour: Net Value Total Hours (1) 3a/D 4.861 (2) 3a/D 4. Interest Costs P(N+1)+ S(N-1) N = No. Yrs. x Simple Int. % Rate 2N Hours/Year (1) +1+1x % (2) +1+ -1 4.9826 Hours/Yr. Hours/Yr. 5. Insurance. N= No. Yrs. P(N+1)+S(N-1) 2N x Insurance % Rate -1 X -1 X 0.9965 Hours/Yr. Hours/Yr. Hours/Year % (2) +1 + % (%) 6. Property Tax N = No. Yrs. P(N+1)+S(N-1) 2N x Tax Rate % Hours/Year % (2) +1 + X Hours/Yr. Hours/Yr.. (Optional method when Property Tax cost per year is known). Property Tax S Per Yr. + Hours/Yr. = 7. TOTAL HOURLY OWNING COST (add lines 3b, 4, 5 and 6) OPERATING COSTS 8. Fuel: Unit Price x Consumption (1) X (2) X 9. Planned Maintenance (PM)-Lube Oils, Filters, Grease, Labor: (contact your local Cat dealer).. 10. a. Tires: Replacement Cost + Life in Hours Cost (1) Na (2) Life b. Undercarriage (Impact + Abrasiveness + Z Factor) x Basic Factor (1) ( X (2) (n/a n/a n/a )= n/a x na (Total) (Factor) 11. Repair Cost (Per Hour) (contact your local Cat dealer). 12. Special Wear Items: Cost + Life (See subsection 12A on back) 13. TOTAL OPERATING COSTS (add lines 8, 9, 10a (or 10b), 11 and 12). 14. MACHINE OWNING PLUS OPERATING (add lines 7 and 13)... 15. OPERATOR'S HOURLY WAGE (include fringes) 16. TOTAL OWNING AND OPERATING COST.. Estimate #1 1.993 12.833211 6480 3.20 N/A 0/ 8.35 1.62 9824.12 9836.95 11.0 100 Estimate #2 639401 9507 2.85 N/A 6.50 0.6 25 Owning & Operating Costs Supplemental Calculations to Estimating Form SUBSECTION 2A: Residual Value at Replacement Gross Selling Price (est. #1) (____%) (est. #2) (%) Less: a. Commission b. Make-ready costs c. Inflation during ownership period Net Residual Value %) (Enter on line 2) delivered price "When used equipment auction prices are used to estimate residual value, the effect of inflation during the ownership period should be removed to show in constant value what part of the asset must be recovered through work. SUBSECTION 12A: Special Items (cutting edges, ground engaging tools, bucket teeth, etc.) (1) Cost Life Cost/Hour (2) 120 1. 150 0.8 200 0.6 + = 1. 120 2. 130 250 0.52 + 2. 150 500 0.3 + W 3. Total (1) 1.62 3. 4. 5. 6. (Enter total on line 12) 4. 4562 5. (2) 0.60 %) of original