A biomass refinery is considering purchasing equipment to mow switchgrass. The first option is a mower conditioner with a cutting width of 2.5 m that requires 45 kW to operate. The second mower...

A biomass refinery is considering purchasing equipment to mow switchgrass. The first option is a mower conditioner with a cutting width of 2.5 m that requires 45 kW to operate. The second mower conditioner under consideration cuts a 4.5 m swath and requires 105 kW to operate. Using a spreadsheet, calculate the machine rate for the following tractor-implement scenarios so you can make an informed purchasing decision. Determine the annual use of the tractor and the mower, as well as the field capacity. The company plans on mowing 400 ha per year with this system. Assumptions: 5% interest rate 15 year life for the tractor 7 year life for the rotary mower The tractor will be used an additional 40% of the scheduled time than the mower $12.75/h operator wage Equipment/Implement Scenarios: a. The company may purchase a 54 kW tractor (MSRP: $51,269) to pull the 2.5 m mower conditioner (MSRP: $18,617). b. The company may purchase a 116 kW tractor (MSRP: $98,578) to pull the 4.5 m mower conditioner (MSRP: $35,753). c. The company found a used 2002 John Deere 7710 with 6000 h for $55,000. Should they purchase this instead of the JD 7730? The 956 Mower Conditioner would still be purchased.