Landscape and Irrigation is read by decision makers throughout the landscape and irrigation markets — including contractors, landscape architects, professional grounds managers, and irrigation and water mgmt companies and reaches the entire spetrum.
Issue link: https://read.dmtmag.com/i/55163
Equipment Focus form an NPV analysis and determine the actual return for each alternative. The individual rates of return can then be used to rank the alternatives. For example, let's say you have five projects, with a total cost of $450,000, but you have only been allocated $360,000. An NPV analysis provides the following information: Project Cost 1 2 3 4 $150,000 $100,000 $ 75,000 $ 25,000 Actual ROI Target ROI 18.2% 20.3% 12.9% 14.6% 5 $100,000 15.1% Total $450,000 15.4% 15.4% 15.4% 15.4% 15.4% In this case, Project 2 has the highest return on investment (ROI) (20.3%) and should be funded first. Next would be Project 1 at 18.2%. The remaining projects are returning less than the de- sired ROI, but may still be perfectly valid and necessary. Unless there are some overriding requirements, such as regulatory com- pliance, the next project funded should be number 5, at 15.1%. Lacking an ROI analysis, you may have been tempted to fund Projects 3 and 4 which have the same total cost as project 5, but provide a lower ROI. Although documentation of your operations with accurate NPV cost studies is not something that finance people normally expect from the typical fleet manager, it is a means to maximize the utilization of your limited budget, increase your professional- ism, and possibly obtain additional funding. LI Robert "Bob" Johnson is a former fleet manager and currently serves as director of fleet relations for the NTEA, the Association for the Work Truck Industry. He will lead a session on "Making Vehicle Investment Decisions Using Life-cycle Cost Analysis" on Wednesday, March 7, at The Work Truck Show 2012. He is also co-presenting the expanded Fleet Management Symposium on March 5-6. The Work Truck Show is held in Indianapolis, March 6-8, 2012, with educational programming running March 5-7. If you would like to learn more about this valuable financial analysis tool, register for the Show at www.ntea.com. To order the NTEA's Vehicle Life-cycle Cost Analysis Program, (item #1226) click "Shop NTEA" at www.ntea.com. Work Trucks and Accessories 2012 Chevy Silverado HD Redesigned for 2011, the Silverado heavy-duty lineup rolls into 2012 with even greater towing and pay- load capacities including 1-ton fifth-wheel towing capacity of 23,000 pounds, conventional towing capac- ity of 18,000 pounds, and payload of 7,215 pounds. Also new for 2012 are an available navigation radio with a built-in hard drive, heated/cooled seats for LTZ models, and a Z71 Off-Road appearance package Four new exterior colors: Silver Ice Metallic, Mocha Steel Metallic, Carbon Flash Metallic and Graystone have been added. Two new interior color combinations are available: Dark Titanium/Light Titanium and Dark Cashmere/Light Cashmere. Tipper E-Series from Crysteel Mfg. The 2-4 yard Tipper E-Series from Crysteel Manufacturing is available in an economical base model, but custom option packages can be added to create the most versatile body for the contractor's needs. Crysteel Mfg. offers a comprehensive, 5-year warranty on all dump bodies and hoists. 2012 Dodge Ram 2012 Ram 4500 and 5500 medium-duty (Class 4 and 5) Chassis Cab commercial trucks are available with an optional 30,000-pound gross combined weight rating (GCWR), an increase from 26,000 pounds. The new Ram 4500/5500 Chassis Cab GCWR upgrade is part of an optional "Max Tow" package, and is avail- able on both regular and crew cab models and in 4x2 and 4x4 configurations. Among Ram's features: standard Gross Vehicle Weight Rating (GVWR) of 19,500 pounds, longer-lasting brakes, 160 percent less brake fade than the competition, a 52-gallon fuel tank, and a five-year/100,000-mile powertrain warranty. 24 Landscape and Irrigation February 2012 www.landscapeirrigation.com