Table C.-2. Constants for Deriving Truck Chassis Maintenance 



and Repair Costs. 



Truck Type Constants 



C X N M 



M,N,andO $1,460 8 $3,400 80,000 



P 11,690 8 $3,800 80,000 



Q $2,225 9 $4,200 90,000 



Truck depreciation rates were derived from a published list that is 

 presumed to reflect average time and wear depreciation.^ It was assum- 

 ed that trucks are traded at the time of the first major overhaul or ten 

 years, whiche\cr comes first. Table C-2 shows the mileages of the differ- 

 ent types of vehicles at the time of major overhaul and Table C-3 shows 

 the trade-in values in percentage of new investment. 



Van depreciation costs were established from the same rates used 

 for the truck chassis and cabs. According to information furnished by 

 hatcheries, vans are replaced after 400,000 miles of use or ten years, 

 whichever occurs first. 



Annual interest costs were drived with the following equation: 



I = (0-T) ^ ^^-±^' + Tr 

 2 m 



O r= Original price minus cost of tires 



T = Trade-in value 



r ^= Interest rate 



m = Years of life, cycle mileage divided by annual mileage 



Constants for this equation are the same as those used in determining 

 maintenance and repair and depreciation. An interest rate of six percent 

 is assumed. 



Property taxes were based on the method used in the State of New 

 Hampshire. Taxes were levied at the rate of 17 mills per dollar of new 

 investment for the first year, 12 for the second, 9 for the third, 5 for the 

 fourth, and 3 for each additional year of use. 



1 Official Automobile Guide, Price Edition, Recorder & Statistical Corporation, 

 87th ed. (Jan. 1958). 



55 



