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Chap_13 - What’s 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: What’s 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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