Replacement Analysis - Reasons
8 important questions on Replacement Analysis - Reasons
What is augmenting capacity or capability of an existing asset?
When making the decision whether to replace an asset what is meant with;
- Defender
- Challenger
Existing (old) asset.
Challenger
One or more alternative (new) assets.
What are [4] reasons for replacement analyses?
- Physical Impairment (Deterioration)
- Altered Requirements
- Technology
- Financing
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What is obsolescence and what [2] reasons would fit in this category?
Altered requirements and technologies
What are various types of lives for an asset? [4]
- Economic life
- Ownership life
- Physical life
- Useful life
- What is economic life?
- What is assumed?
Assumed
Good asset management | economic life should coincide with the period of time extending from the date of acquisition to the date of abandonment, demotion or replacement from the primary intended service.
What is ownership life?
What is physical life?
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