wear and time depreciation. It was specified that trucks would he traded 

 every 10 vears, or prior to a major overhaul or engine replacement, 

 whichever occurs first. 



Truck depreciation costs per day are plotted in Figure E-3. 



Interest Costs 



Annual costs were determined according to the formula used l)y 

 Clarke and Bressler:^ 



I = (P-S) (r/2) (L + 1/L) + Sr 



Where : 



I ^ interest cost annually 

 P = original price of chassis minus tires; or original price of 



platform 

 S = Salvage value of chassis at end of life (taken from Table E-3) ; 



or salvage value of platform 

 r = interest rate 

 L = 0/A, years of expected life for chassis; or years of expected 



life for platform 

 O = miles to major overhaul for size of truck 



o 

 a 



(A 



o 



Figure E-4. Truck Interest Cost Per Day Relative to Daily Mileage. 



T 



1.201- 



? .80 



o 

 •o 



I 



♦- 



V) 



o 

 o 



to 



c 



.40 



- 







J. 



J. 



J. 



50 100 150 200 250 



Level of truck use — miles per day 



300 



^ D. A. Clarke, Jr. and R. G. Bressler, Jr., Efficiency of Milk Marketing in Connecti- 

 cut, 6. Truck Costs and Labor Requirements in Milk Delivery Routes, University of 

 Connecticut. Agricultural Experiment Station Bulletin No. 248, June 1943, p. 14. 



59 



