Really you don't have $12 per board to pay for the machine. You have only $2 per board to pay for the machine, $12 minus current rate, $10, equals $2. Then you need to add the costp of maintenance of that machine. For grins let's ignore that. So $50,000/2 is 25,000 boards. At the rate stated below that would be about 90 months payback at best. Then you must add the interest on the original $50,000 as stated in another earlier post. Sounds might slim to be buying a $50,000 machine to save $2 bucks on that number of boards. Ken Stephens, President CAD 2 CAM, Inc. http://www.cad2cam.com 503-246-4692 > -----Original Message----- > From: TechNet [mailto:[log in to unmask]]On Behalf Of Bob Sechriest > Sent: Wednesday, December 15, 1999 8:37 AM > To: [log in to unmask] > Subject: [TN] econ 101 for engineers > > > Need some very basic advise on cost calculations for equipment purchace > > Trying to justify the purchace of a conformal coating machine for > several of our PCB assemblies. We have been performing the > operation manually at a cost of $10 per board less than that > quoted by our board builder. My estimate is that by automating we > can reduce the price per board another $2 below the quote. So for > a $50000 machine, we can recover our investment by producing > (50000/12) = 4167 boards. This gives a payback in <18months. > Sounds great! also sounds too easy. Am I missing something? > > Thanks in advance!!!!!!!!! > Bob > > ############################################################## > TechNet Mail List provided as a free service by IPC using LISTSERV 1.8c > ############################################################## > To subscribe/unsubscribe, send a message to [log in to unmask] with > following text in > the body: > To subscribe: SUBSCRIBE TECHNET <your full name> > To unsubscribe: SIGNOFF TECHNET > ############################################################## > Please visit IPC web site (http://www.ipc.org/html/forum.htm) for > additional > information. > If you need assistance - contact Gayatri Sardeshpande at [log in to unmask] or > 847-509-9700 ext.5365 > ############################################################## > ############################################################## TechNet Mail List provided as a free service by IPC using LISTSERV 1.8c ############################################################## To subscribe/unsubscribe, send a message to [log in to unmask] with following text in the body: To subscribe: SUBSCRIBE TECHNET <your full name> To unsubscribe: SIGNOFF TECHNET ############################################################## Please visit IPC web site (http://www.ipc.org/html/forum.htm) for additional information. If you need assistance - contact Gayatri Sardeshpande at [log in to unmask] or 847-509-9700 ext.5365 ##############################################################