Replacement Analysis

Engineering Economics Revision Article Series

Replacement refers to a broad concept embracing the selection of similar but new assets to replace existing assets as well as selection of entirely different ways to perform the function supported by the earlier asset.

Replacement decisions are a choice between the present asset, called defender and currently available alternatives termed as challengers.

Varieties of Replacement Necessity

Replacement due to deterioration

Replacement due to obsolescence

Replacement due to inadequacy

References

Engineering Economics, 4th Edition, James L. Riggs, David D. Bedworth, and Sabah U. Randhawa, McGraw Hill, New York, 1996


Online Material

Automobile replacement case studies for engineering economy classes
Engineering Economist, The, Spring 1998 by Hartman, Joseph C
http://findarticles.com/p/articles/mi_qa3621/is_199804/ai_n8801745

http://www.ise.ufl.edu/ein4354/Downloads/ch13/Ch13.ppt

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