Make economic replacement decisions to increase availability and organisation profits - easy to use scientific method.
This model
calculates the economic replacement point in time for any piece
of equipment or machinery. You get financial and statistical
calculation of desirable replacement moment in time.
In this model you have to enter the annual operating cost,
average inflation rate, financial interest rate and replacement
value for each piece of equipment. The model calculates the total
payback annuity on capital and operating cost and the economic
life span. Economic life span in turn are based on the square
root of (2 x avg annual present value ops cost / replacement
value). A warning signal becomes operative when economic life
span is reached. Includes a floating graph.
It can be useful for monitoring replacement of vehicles, be it
on-road or off-road.
You should also order the presentations module "How to motivate Capital".
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