14


contain the coefficients for calculating remaining farm value used in

computing the salvage value of the machine. Column 13 contains the

purchase price of the machine, defined as any trade-in value plus the cash

difference paid for the machine. Column 14 is used to code the fuel

type of self-propelled machines (1 = gas, 2 = LP, 3 = Diesel) and column

15 contains the estimated total useful life of the machine in hours of

use. Column 16 is used to express the horsepower of the machine when

fuel use is to be calculated on horsepower instead of initial list price

(when Column 16 = 1.0). An example machinery complement is shown in

Appendix V.

 Part 7 of the input form may be used to change any of the coefficients

associated with a piece of machinery (except Column 16) or to add a new

machine in a blank line of the machinery complement, by entering the

desired coefficient in the proper row and column. It should be mentioned,

however, that extreme caution must be exercised in altering columns 6,7,8

and 15 as these coefficients are used to calculate repair costs. Similar

caution should be exercised regarding columns 11 and 12 as these values are

used to calculate depreciation and salvage value. It should also be

recognized that any changes made in the machinery complement are temporary,

meaning that they may be used for the budget being generated but do not

alter the values stored permanently in the machinery complement.


Machinery Costs per Hour (Part 8)

 As mentioned previously, the program is designed to automatically

calculate both variable (fuel, lubricants, repairs, etc.) and fixed

(depreciation, interest, taxes, etc.) machinery costs per hour. There

are, however, situations in which the user may wish to enter values for