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FM (Theory) > Replacement OT > Flashcards

Replacement OT Flashcards

1
Q

What is replacement?

A

How long should we wait before we replace an asset

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2
Q

Replacement calculation

A

Calculation PV of first machine

Calculate the equivalent annual cost

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3
Q

What is the equivalent annual cost?

A

PV of first machine / Annuity discount factor for replacement period

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FM (Theory) (81 decks)

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