Chap_13 - Whats past is past - sunk costs cannot be...

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IE 3125  Engineering  Economic Analysis Chapter 13 Replacement Analysis (different from book)
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Replacement Analysis Commonly used Status quo (defender) is compared to  replacement alternatives (challengers) Two approaches Internal view (cash flow approach) External view
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Replacement Difficulties Emotional attachment to current assets
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Unformatted text preview: Whats past is past - sunk costs cannot be recovered Replacement Assumptions Alternatives are usually ranked based on Annual Worth (EUAC) Cash flows are usually negative Replacement has the same capability as the current asset...
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This note was uploaded on 10/14/2009 for the course EECS 353 taught by Professor Sahakian during the Winter '05 term at Northwestern.

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Chap_13 - Whats past is past - sunk costs cannot be...

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