Chapter 3 Equipment Life and Replacement Procedures

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EQUIPMENT LIFE AND

REPLACEMENT
PROCEDURES
Chapter 3 Introduction

Introduction

Equipment Life

Physical Life

Equipment Life Factors


Profit

Life
Economic Life

Depreciation Costs and


Replacement

Investment and Inflation

Maintenance and Repair costs

Downtime

Obsolescence

10

Summary of Costs

11

Losses Resulting from Improper


Equipment Replacement

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Replacement Analysis
Theoretical

Methods
Intuitive Methods
Minimum Cost Methods
Maximum Profit Method
Payback Period Method
Mathematical Modeling Method
Practical Methods
Public Agency Methods
Sensitivity Analysis
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Replacement Equipment
Selection
Replacement Decision Making
Decision Making Foundations
Examination of Alternatives
Decision

to Invest

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General Factors
Machine Productivity
Product Features and
Dealer support

Attachments

Price

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Thinking About
Work and
Equipment

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Aerial View

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Work Being Done


Install

10 wide, 4 sidewalk along


road, consisting of unreinforced
concrete
Install ADA ramps as necessary
Adjust firehouse driveway as needed.
Driveway to consist of 8
unreinforced concrete

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Street Views

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Street Views

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Street Views

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Street Views

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Street Views

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Street Views

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What Work is Needed?


#

WORK

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What Tools and Equipment are


Needed?
#

WORK

TOOLS/ EQUIPMENT

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