Author: Susan Wood Gay, Assistant Professor and Extension Engineer, Biological Systems Engineering Department; and Robert "Bobby" Grisso, Professor and Extension Engineer, Biological Systems Engineering Department; Virginia Tech.
Publication Number 442-760, May 2002
Table 1. Total annual cost of a 100-foot by 50-foot, open-sided farm storage building. Initial cost of the building is $20,000. Depreciation rate is over 20 years, interest rate is 9.0%, and repairs, taxes, and insurance total 2.0% of initial investment.
| Costs for Example Barn | ||
|---|---|---|
| Depreciation (20 years) | = $20,000 ÷ 20 | = $1,000 |
| Interest on investment | = 2/3 x 0.090 x $20,000 | = $1,200 |
| Repairs, taxes, and insurance | = 0.020 x $20,000 | = $400 |
| Total Annual Cost | = $2,600 | |
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