Ebook Basics of engineering economy: Part 2
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Ebook Basics of engineering economy: Part 2
www.downloadslide.comChapterReplacement and Retention DecisionsI he McGraw-Hill Companies. Inc J1 Ken CavanaghOne of the most commonly performed engin Ebook Basics of engineering economy: Part 2neering economy studies is that of replacement or retention of an asset or system that is currently installed. This di tiers from previous studies where all the alternatives arc new. The fundamental question answered by a replacement study about a currently installed asset or system is. Should it he Ebook Basics of engineering economy: Part 2 replaced now or later? When an asset is currently in use and its function is needed in the future, it will be replaced at some time. So, in reality,Ebook Basics of engineering economy: Part 2
a replacement study answers the question of when, not if. to replace.A replacement study is usually designed to first make the economic decision to rewww.downloadslide.comChapterReplacement and Retention DecisionsI he McGraw-Hill Companies. Inc J1 Ken CavanaghOne of the most commonly performed engin Ebook Basics of engineering economy: Part 2ited each year to ensure that the decision to retain is still economically correct. This chapter explains how to perform the initial year and follow-on year replacement studies.215www.downloadslide.comA replacement study is an application of the AW method of comparing unequal-life alternatives, firs Ebook Basics of engineering economy: Part 2t introduced in Chapter 5. In a replacement study with no specified study period, the AW values arc determined by a technique of cost evaluation calleEbook Basics of engineering economy: Part 2
d the economic service life (ESL) analysis. If a study period is specified. the replacement study procedure is different from that used when no study www.downloadslide.comChapterReplacement and Retention DecisionsI he McGraw-Hill Companies. Inc J1 Ken CavanaghOne of the most commonly performed engin Ebook Basics of engineering economy: Part 2w one that could replace it.Basics1Understand the fundamentals and terms for a replacementstudy.IEconomic service life2Determine the economic service life of an asset that minimizes the total AW of costs.Replacement study3Perform a replacement study between the defender and the best challenger.Repla Ebook Basics of engineering economy: Part 2cement value4Determine the replacement value to make the defenderand challenger equally attractive.IStudy period specified5Perform a replacement studyEbook Basics of engineering economy: Part 2
over a specified number ofyears.ISpreadsheets6Use a spreadsheet to determine the ESL, to perform a replacement study, and to calculate the replacemenwww.downloadslide.comChapterReplacement and Retention DecisionsI he McGraw-Hill Companies. Inc J1 Ken CavanaghOne of the most commonly performed engin Ebook Basics of engineering economy: Part 2 exclusive alternatives compared arc currently in place. It is very' common to face the situation that the cuưcntly used asset (or system or service) could be either replaced with a more economical alternative or retained as is. This is called a replacement study, which may be necessary for several Ebook Basics of engineering economy: Part 2reasons—unacceptable performance or reliability, physical deterioration. competitive or technological obsolescence, or changed requirements. At some pEbook Basics of engineering economy: Part 2
oint in time, the function of every' currently used asset must be replaced. A replacement study provides an answer to the question: Is replacement witwww.downloadslide.comChapterReplacement and Retention DecisionsI he McGraw-Hill Companies. Inc J1 Ken CavanaghOne of the most commonly performed engin Ebook Basics of engineering economy: Part 2allenger. The replacement analysis is performed from the perspective (viewpoint) of a consultant or outsider. That is. the analysis assumes that neither of the alternatives is owned currently; selection is between the proposed challenger and the in-place defender.To conduct the economic analysis, th Ebook Basics of engineering economy: Part 2e estimates for the challenger arc developed as presented in previous chapters. The challenger first cost is the actual investment needed for acquisitEbook Basics of engineering economy: Part 2
ion and installation. (A common temptation is to increase the challenger's initial cost by the defender's unrecovered depreciation. This amount is a swww.downloadslide.comChapterReplacement and Retention DecisionsI he McGraw-Hill Companies. Inc J1 Ken CavanaghOne of the most commonly performed engin Ebook Basics of engineering economy: Part 2lues arc obtained as follows:•The exacted life n is the number of years at which the lowest AW of costs occurs. This is called the economic service life or DSL. (Section 9.2 details the technique to find ESL.) Ebook Basics of engineering economy: Part 2www.downloadslide.comChapterReplacement and Retention DecisionsI he McGraw-Hill Companies. Inc J1 Ken CavanaghOne of the most commonly performed enginGọi ngay
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