Interest Factors in Equipment Economics

by C. J. Schexnayder, Jr., (M.ASCE), Assoc. Prof.; Dept. of Civ. Engrg., Louisiana Tech Univ., Ruston, La.,
Donn E. Hancher, (M.ASCE), Assoc. Prof.; Dept. of Civ. Engrg., Purdue Univ., W. Lafayette, Ind.,

Serial Information: Journal of the Construction Division, 1981, Vol. 107, Issue 4, Pg. 575-583

Document Type: Journal Paper


The interest factor to be included in equipment economic studies has not been properly explained in the past. A method, Market Value Maximization, is outlined for the correct calculation of the interest rate to be used in economic analyses. Example calculations are demonstrated and the applicability to the construction contractor situation is discussed.

Subject Headings: Economic factors | Equipment and machinery | Construction equipment | Contractors and subcontractors

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