Item No. 6F attach
Meeting Date:
January 9, 2018
Vacuum Truck Analysis
Overall Assumptions:
Inflation 3.0%
Discount Rate 6.0%
Alt - 1 Status Quo - Continue to Rent to supplement old equipment
Rental Cost: $14,000 per month (includes Maintenance)
Hours: 2,762 Per Year
Labor Cost: $75 per Hour
Year 1 2 3 4
5 6 7 8 9 10 Total
Rental
$168,000 $173,000 $178,000 $183,000 $188,000 $194,000
$200,000 $206,000 $212,000 $218,000 $1,920,000
Maintenance
- - - - -
- - - - - -
Operating Cost $207,150 $213,000 $219,000 $226,000 $233,000 $240,000 $247,000 $254,000 $262,000 $270,000 $2,371,150
$375,150 $386,000
$397,000
$409,000 $421,000 $434,000 $447,000 $460,000 $474,000 $488,000 $4,291,150
Present Value: $3,114,244
Alt - 2 Contracted Service
Hours: 2,762 Per Year
Operating Cost: $177.50 per Hour (Inlcudes Operation & Maintenance)
Year 1 2 3
4 5 6 7 8 9 10 Total
Service cost $490,255 $505,000 $520,000 $536,000 $552,000 $569,000 $586,000 $604,000 $622,000 $641,000 $5,625,255
$490,255 $505,000 $520,000 $536,000 $552,000 $569,000 $586,000 $604,000 $622,000 $641,000
$5,625,255
Present Value: $4,081,499
Alt - 3 Purchase New Equipment
Hours: 2,762 Per Year
Labor Cost:
$75 Per Hour
Maintenance: $7,500 Per Year
Year 0 1 2 3 4 5 6 7 8 9 10 Total
Equipment Cost
$450,000 $450,000
Maintenance $7,500 $8,000 $8,200 $8,400 $8,700 $9,000 $9,300 $9,600 $9,900 $10,200 $88,800
Operating Cost $207,150 $213,000 $219,000 $226,000 $233,000 $240,000 $247,000 $254,000 $262,000 $270,000 $2,371,150
$214,650 $221,000 $227,200 $234,400 $241,700 $249,000 $256,300 $263,600 $271,900
$280,200 $2,909,950
Present Value: $2,235,004
