Accession Number : ADA190263

Title :   A Study of Caterpillar Tractor Company's Equipment Investment Analysis Method.

Descriptive Note : Master's thesis,

Corporate Author : FLORIDA UNIV GAINESVILLE

Personal Author(s) : Trummer, Frederick G , Jr

PDF Url : ADA190263

Report Date : Jan 1987

Pagination or Media Count : 121

Abstract : This report based on Caterpillar's Equipment Investment Analysis III (EIA III) program as a guide for further study of heavy equipment. THe program was developed by John Gruebele, Fred Grafton, Bob Johnson, and Alex Forbes, of Caterpillar Tractor Company. References to Equipment Investment Anlaysis III, or its abbreviated from, are taken directly form the program that is copyrighted by Caterpillar. The format presented in the Macintosh version of EIA III was copied form Caterpillar's program documentation and credit for it belongs to the developers. The objective of Caterpillar in its development of EIA III is to assist their dealership network and prospective equipment purchasers in determining the best choice of equipment based on least total cost. EIA III documentation claimed to be a simple financial model that will provide: (1) The after tax owning costs of two alternate machines; (2) Operating costs per hour and total for the ownership period; (3) Production potential; (4) Net profit potential; (5) Costs per hour before and after tax; (6) Costs per unit of production before and after tax; (7) Total discounted cash flows. This study of the EIA III program output and associated documentation that Caterpillar is providing to their dealership network. To determine the rationale of Caterpillar's approach, to determine if Caterpillar provides the above items to their dealers, and to determine needed areas of improvement are the main objectives.

Descriptors :   *INVESTMENTS, *PRODUCTION, *VEHICLE EQUIPMENT, COSTS, FINANCE, FLOW, MACHINES, MONEY, OUTPUT, PROFITS, TAXES, COMPUTER PROGRAMS, TRACTORS, THESES

Subject Categories : Economics and Cost Analysis
      Computer Programming and Software
      Surface Transportation and Equipment
      Logistics, Military Facilities and Supplies

Distribution Statement : APPROVED FOR PUBLIC RELEASE