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Modeling Economic Life…

Modeling Economic Life…

Modeling Economic Life…. Total EAC = EAC of Ownership + EAC of Operation Objective is to determine the optimum number of years to own an asset that minimizes the Total EAC. This is called the Economic Service Life of the asset. Conceptually…. Over time…

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223 views • 9 slides
Replacement and Economic Service Life

Replacement and Economic Service Life

Replacement and Economic Service Life. Replacement Analysis When to replace an asset, and what to replace it with? Outsider’s Perspective… What would it cost someone on the outside to perform the same operation? Relevant costs ONLY – Costs common among all options are not considered.

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179 views • 9 slides
Replacement and Economic Service Life

Replacement and Economic Service Life

Replacement and Economic Service Life. Replacement Analysis When to replace an asset, and what to replace it with? Outsider’s Perspective… What would it cost someone on the outside to perform the same operation? Relevant costs ONLY – Costs common among all options are not considered.

★ ★ ★ ★ ★

250 views • 9 slides
Replacement and Economic Service Life

Replacement and Economic Service Life

Replacement and Economic Service Life. Replacement Analysis When to replace an asset, and what to replace it with? Outsider’s Perspective… What would it cost someone on the outside to perform the same operation? Relevant costs ONLY – Costs common among all options are not considered.

★ ★ ★ ★ ★

162 views • 9 slides
Modeling Economic Life…

Modeling Economic Life…

Modeling Economic Life…. Total EAC = EAC of Ownership + EAC of Operation Objective is to determine the optimum number of years to own an asset that minimizes the Total EAC. This is called the Economic Service Life of the asset. Conceptually…. Over time…

★ ★ ★ ★ ★

177 views • 8 slides

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