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APPENDIX 



Operating Costs 



The appendix shows how operating costs were determined. The machine costs have 

 been based on values of used machines, while the horses were considered as young horses. 



The machines are smaller than might normally be available. Also, these machines, 

 while doing the job efficiently, were well past their normally depreciable life span. 

 Their replacement cost would certainly be much higher than the listed purchase price. 

 Yet, it is unlikely that a new machine would we used on this type of logging chance. 

 Hence, the listed purchase price relates to the market values of the machines when the 

 study was undertaken. 



The horses were priced at their current age value. It is assumed that this sort 

 of work would be limited to mature, vigorous animals that bring high prices. 



SKIDDER OPERATING COST 



Model 15 Garrett Tree Farmer (1965) 



Purchase Price $2,500 



Useful Life 



5 years 



Depreciation $500/yr with zero resale. 



$55.56/month @ 9 month/yr 

 $2.65/day @ 21 days/month 



$2.65 



Interest, Insurance, and Tax = 10% AAI 



$1,250 X 10% = $125.00 = 70(j:/day 



.70 



Tires = $500/year = 265/day 



2,65 



Maintenance ^ Repair - $550/year = $2.91/day 



2.91 



Operator @ 8.00/hour = $72.00/day 



72.00 



Total Daily Cost 



$80.91 



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