Proceedings ArticleDOI
Predicting the Residual Value of Heavy Construction Equipment
Gunnar Lucko,Michael C. Vorster +1 more
- pp 1-11
TLDR
This paper argues that the residual value can be predicted accurately based on publicly accessible data from equipment auctions and publications by manufacturers and their distributors based on multi-linear regression analysis.Abstract:
Heavy construction equipment is routinely used on construction projects that entail earthmoving operations. Owning and operating these machines may comprise a significant portion of the project costs. An important element of the owning costs is the residual value. However, the nature of the residual value of construction equipment is largely unknown. Ongoing research at Virginia Tech examines the residual value of different types of construction equipment to provide a better approach than the rules of thumb currently used by equipment managers. This paper argues that the residual value can be predicted accurately based on publicly accessible data from equipment auctions and publications by manufacturers and their distributors. Related research in agriculture and forestry is reviewed. Data collection and preparation and results from the multi-linear regression analysis are described. Statistical measures of the goodness-of-fit for different possible functional forms of the regression model are given and a sample calculation is presented.read more
Citations
More filters
Journal ArticleDOI
Perception of Residual Value Risk in Public Private Partnership Projects: Critical Review
TL;DR: In this article, the authors present a precise definition and meaning of residual value risk (RVR) in public private partnership (PPP) projects and conduct an open-ended questionnaire survey to understand the perception of RVR in PPP projects.
Journal ArticleDOI
Assessing Residual Value of Heavy Construction Equipment Using Predictive Data Mining Model
TL;DR: In this article, a data mining based approach for estimating the residual value of heavy construction equipment using a predictive data mining model, and its potential benefits on the decision making of construction equipment management.
Journal ArticleDOI
Cost, energy use and GHG emissions for forest biomass harvesting operations
TL;DR: In this article, an assessment of cost, energy and greenhouse gas (GHG) emissions of forest biomass harvesting was conducted and the results indicated that productivity had the largest impact on harvesting cost followed by machinery purchase price, yearly scheduled hours, and expected utilization.
Journal ArticleDOI
Statistical Considerations for Predicting Residual Value of Heavy Equipment
Gunnar Lucko,Gunnar Lucko,Gunnar Lucko,Christine M. Anderson-Cook,Christine M. Anderson-Cook,Christine M. Anderson-Cook,Michael C. Vorster,Michael C. Vorster,Michael C. Vorster +8 more
TL;DR: In this paper, a second-order polynomial of equipment age with additive factors appears promising as the final regression model to correctly display residual value and cross-validation using randomly split halves of the dataset is performed.
Journal ArticleDOI
Modelling residual value risk through ontology to address vulnerability of PPP project system
Jingfeng Yuan,Xuan Li,Kaiwen Chen,Miroslaw J. Skibniewski,Miroslaw J. Skibniewski,Miroslaw J. Skibniewski +5 more
TL;DR: The proposed RVR ontology framework provides a useful framework to systematize different knowledge of RVRs in PPP projects, in which the related knowledge can be described clearly and effectively.
References
More filters
Journal ArticleDOI
Depreciation Patterns for Agricultural Machinery
TL;DR: In this article, a flexible functional form model is used to estimate remaining value equations for eleven major types of farm machinery from ten years of machinery auctions, and the remaining values were found to be influenced by machinery condition, use, manufacturer, and age.
Journal ArticleDOI
On Optimal Replacement of Farm Tractors
TL;DR: In this article, the authors investigated the tax effects of inflation on the optimal replacement ages of tractors and other large farm machines and found that the tax law may cause more frequent replacement.
Journal ArticleDOI
The Effect of Usage and Size on Tractor Depreciation
TL;DR: In this article, an econometric model was estimated to explain prices for tractors sold at auction, including tractor age, hours of use, size, and condition, and the model showed that tractor depreciation most closely approximated a sum-of-the-years digits pattern.
Journal ArticleDOI
Remaining Value Functions for Farm Equipment
T. L. Cross,Gregory M. Perry +1 more
TL;DR: In this paper, the authors present new remaining value functions for 12 types of farm equipment, based on recent auction sales data, which are recommended for updating the ASAE standards. But these functions are not responsive to equipment condition, hours of annual use or the condition of the agricultural economy.
Journal ArticleDOI
Reducing Investment Risk in Tractors and Combines with Improved Terminal Asset Value Forecasts
James R. Unterschultz,Glen Mumey +1 more
TL;DR: In this paper, the authors investigated the effect of changes related to time on the performance of combines and tractors and found significant seasonal differences in machinery depreciation rates, indicating that there is a predictable time component to the constant quality asset index that has not been investigated in previous studies.