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Greene County, Illinois | The thing they don't calculate on the purchase side is the increase in the price of new machinery. We all know that the price of steel, rubber, and plastic goes up every year. Assuming 8-10% on a $250,000 machine and that could amount to $20-$25K/ year or $60-$70K over 3 years you would have to save to get the same deal you did 3 years ago. Some of this is offset by depreciation, but depreciation is a cost just like repairs. Of course your old machine should also maintain more of it's value, but just like trading cars you don't see all of that when you trade.
Edited by Illini Fan 12/10/2009 10:27
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Rolling new combines...how to calculate net present value
