Table 8. — Estimated fixed costs of cobalt 60 and X-ray machine facilities, by selected hours of annual 



operation and size, 1964 





: 2, CCO hours 



: , hours 



Item 



: Cobalt 60 : X-ray machine 



: Cobalt (. : X-ray machine 





: 1-kw.: 3-kw.: 3-kw. 



: 1-kw.: 3-kw. : 3-kw. 



1. Depreciation, 8-year straight-line rate : 



based on total facility investment : 20.9 39-6 65.2 20.9 39-6 



2. Interest on total facility investment at : 



6 percent 1/ : 10.0 19.0 31-3 10.0 19.0 



3. Real estate taxes and facility insurance : 



2/ : 1.7 3-2 5-2 1.7 3-2 



4. Fixed repairs and maintenance, and other : 



unavoidable expenses of ownership : 0.5 0.6 0.6 0.5 0.6 



5. Salaries of management and supervisory : 



personnel 3/ •• 4.0 5-0 5-0 8.0 10.0 



6. Interest on short-term loans at 6 percent: C.5 1.? Lj 1.6 2 . C 



Total fixed cost : 37.9 68.4 108.8 42.7 74.4 



Average fixed cost per kw.-hr. of annual : 



facility operation : 18.95 11.40 18.13 10.68 6.20 



108.8 42.7 



Dollars 



65.2 



31.3 



5.2 



0.6 



10.0 



3.0 



115.3 



9.61 



l/ This rate of return on investment is considerably higher than the rate would be on an ordinary long- 

 term low-risk investment. High interest rates are typical for investments in new firms in new indus- 

 tries because investors classify such investments as "speculative." 



2/ 1 percent of facility investment. Based on information for research irradiators supplied by 

 Brookhaven National Laboratory. 



2/ On the assumption that radiation-pasteurizing facilities will be additions to existing packing 

 plants, part of the salary of management and supervisory personnel is therefore allocated to the 

 radiation facility. 



Source: Tables 6 and 7, plus the sources listed for table 5* 



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