Life Span of Machine Solution

STEP 0: Pre-Calculation Summary
Formula Used
Life Span = 0.9*Book Value/Hourly Depreciation
Ls = 0.9*Cbv/Dh
This formula uses 3 Variables
Variables Used
Life Span - (Measured in Hour) - Life Span (in Hours) refers to the usage period or total life of a machine.
Book Value - Book Value refers to the value of machine which includes cost of equipment, taxes, insurance and carriage charge.
Hourly Depreciation - Hourly Depreciation is the depreciation value of new machines chargeable to the work on an hourly basis.
STEP 1: Convert Input(s) to Base Unit
Book Value: 4000.01 --> No Conversion Required
Hourly Depreciation: 20.01 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
Ls = 0.9*Cbv/Dh --> 0.9*4000.01/20.01
Evaluating ... ...
Ls = 179.910494752624
STEP 3: Convert Result to Output's Unit
647677.781109445 Second -->179.910494752624 Hour (Check conversion here)
FINAL ANSWER
179.910494752624 179.9105 Hour <-- Life Span
(Calculation completed in 00.020 seconds)

Credits

Created by Chandana P Dev
NSS College of Engineering (NSSCE), Palakkad
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11 Management of Construction Equipment Calculators

Average Investment if Salvage Value is not 0
Go Average Investment = (Salvage*(Useful Life-1)+Capital Cost*(Useful Life+1))/(2*Useful Life)
Horsepower given Quantity of Oil
Go Engine power = (Quantity of Oil-(Crankcase Capacity/(5*Time between Change of Oil)))*(0.74/(0.0027*Operating Factor))
Quantity of Lubricating Oil
Go Quantity of Oil = (Engine power*Operating Factor*0.0027/0.74)+(Crankcase Capacity/(5*Time between Change of Oil))
Capacity of Crankcase when Quantity of Oil is Determined
Go Crankcase Capacity = 5*Time between Change of Oil*(Quantity of Oil-(Engine power*Operating Factor*0.0027/0.74))
Average Investment when Salvage value is 0
Go Average Investment = ((1+Useful Life)/(2*Useful Life))*Capital Cost
Capital Cost when Salvage Value is 0
Go Capital Cost = (2*Useful Life*Average Investment)/(1+Useful Life)
Depreciation Cost when Straight Line Method is Assumed
Go Depreciation = (Total Cost-Scrap Value)/Useful Life
Book Value for New Machine
Go Book Value = (Hourly Depreciation*Life Span)/0.9
Life Span of Machine
Go Life Span = 0.9*Book Value/Hourly Depreciation
Hourly Depreciation
Go Hourly Depreciation = 0.9*Book Value/Life Span
Hourly Cost Worker
Go Hourly Cost = 12*Monthly Salary/Machine Hours

Life Span of Machine Formula

Life Span = 0.9*Book Value/Hourly Depreciation
Ls = 0.9*Cbv/Dh

What are the factors affecting the Cost of Owning and Operating the Construction Equipment?

The different major costs contributing to the cost of owning and operating construction equipment are as follows:
1. Depreciation Cost
2. Investment Cost
3. Maintenance and Repair Cost
4. Operation Costs
a. Repair charges
b. Depreciation on tyres and tubes
c. Labour charges
d. Fuel charges
e. Operation and maintenance crew charges
f. Miscellaneous supplies
5. Downtime Cost
6. Obsolescence Cost
7. Replacement Cost

What is Depreciation Cost?

Depreciation is defined as the declining value of a machine due to its age, use and obsolescence. After years of working, the machine will be worn-out, and the value becomes scrap value which is 10% less than the book value. This will require a replacement and for that a fund will be built-up, which is termed as depreciation.

How to Calculate Life Span of Machine?

Life Span of Machine calculator uses Life Span = 0.9*Book Value/Hourly Depreciation to calculate the Life Span, The Life Span of Machine formula is defined as the period where the machine or the equipment can be used, or it is serviceable or otherwise the period till which the machine fulfils its purpose. Life Span is denoted by Ls symbol.

How to calculate Life Span of Machine using this online calculator? To use this online calculator for Life Span of Machine, enter Book Value (Cbv) & Hourly Depreciation (Dh) and hit the calculate button. Here is how the Life Span of Machine calculation can be explained with given input values -> 0.05 = 0.9*4000.01/20.01.

FAQ

What is Life Span of Machine?
The Life Span of Machine formula is defined as the period where the machine or the equipment can be used, or it is serviceable or otherwise the period till which the machine fulfils its purpose and is represented as Ls = 0.9*Cbv/Dh or Life Span = 0.9*Book Value/Hourly Depreciation. Book Value refers to the value of machine which includes cost of equipment, taxes, insurance and carriage charge & Hourly Depreciation is the depreciation value of new machines chargeable to the work on an hourly basis.
How to calculate Life Span of Machine?
The Life Span of Machine formula is defined as the period where the machine or the equipment can be used, or it is serviceable or otherwise the period till which the machine fulfils its purpose is calculated using Life Span = 0.9*Book Value/Hourly Depreciation. To calculate Life Span of Machine, you need Book Value (Cbv) & Hourly Depreciation (Dh). With our tool, you need to enter the respective value for Book Value & Hourly Depreciation and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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