A New Approach to the Determination of Replacement Costs

The time adjusted minimum average costs of an industrial equipment or process are expressed in terms of the logarithmic decrement of its salvage values. The obsolescence gradient and/or the economic life of the equipment do not enter into the formula of the minimum average costs, which are thus obtained more simply and accurately than through the classical estimation procedures.

• 저널Management Science · 6(1) · 111–122
• 토픽Technology Assessment and Management · Safety, Risk, Reliability and Quality
• DOI10.1287/mnsc.6.1.111
• 저자Francois J. Olmer