EP 1110-1-8
(Vol. 4)
31 July 03
2.11
Discount Code (DC)
A 7.5-percent discount is used for all equipment except highway trucks that are
discounted at 15 percent. The total discounted price is derived by subtracting the
appropriate discount from the total list price. The identification of the discount is shown
in appendix D under column heading DC. Two codes are used to identify the discount,
B equals the basic discount of 7.5 percent and S equals the special discount of 15
percent.
2.12
Sales or Import Tax
Total state sales tax (which includes local taxes) or import tax is computed as a
percentage of the discounted price. The average tax for the region is shown in
appendix B.
2.13
Freight
Estimated allowances for freight are given in appendix B. This allowance
includes preparation and delivery. Multiply the shipping weight based on hundredweight
(cwt) by the freight rate to determine freight charges.
2.14
Total Equipment Value (TEV)
Freight is added to the total discounted price (which includes sales tax) to arrive
at the TEV. The estimated TEV is indicated in table 2-1 under the column heading
VALUE.
SECTION V. LIFE
2.15
Economic Life (LIFE)
The expected economic life of the equipment will vary based on the type of
equipment and the condition of use. It is established from manufacturers' or equipment
associations' recommendations. The expected economic life in hours is given in
appendix D, under the column heading LIFE, for both average and severe conditions.
2.16
Working Hours Per Year (WHPY)
Annual average operating hours have been established for equipment working
within the region covered by this pamphlet. The number of WHPY as shown in
appendix B is equivalent to 1 year's use for a single shift operation. Average hours of
use per year are determined by reducing the maximum available hours per year
(40 hours per week, 52 weeks per year) to allow for lost working days due to the
following factors:
Weather
Employee holidays
Equipment maintenance and repairs
2-4
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