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Engineering Economy, 5/e
Leland Blank, Texas A&M University
Anthony Tarquin, University of Texas - El Paso
Replacement and Retentions Decisions

Learning Objectives

Purpose: Perform a replacement study between an in-place asset or system and a new one that could replace it.

This chapter will help you:


1. Basics

Understand the fundamentals and terms for a replacement study.

2. Economic service life

Determine the economic service life of an asset that minimizes the total AW of costs.

3. Replacement study

Perform a replacement study between the defender and the best challenger.

4. Additional considerations

Understand how to address several aspects of a replacement study that may be experienced.

5. Study period

Perform a replacement study over a specified number of years.








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