EP 1110-1-8
(Vol. 7)
31 July 03
SECTION IX. RATE CALCULATION EXAMPLE
4.20
Rate Calculation Example
The example shown in figure 4-2 illustrates the use of figure 4-1, table 4-1, and
the regional data from appendix B to generate a rate. For illustration purposes, assume
that a 24-inch hydraulic dredge was purchased new in 1987 for ,700,000, including
tax and delivery, and there were no initial capital improvements. This example uses
500 hours per month and a discounted CMR of 3.4 percent.
4-8
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