Most of the rolling stock procured through capital funding by various transit

Most of the rolling stock procured through capital

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Most of the rolling stock procured through capital funding by various transit agencies remain in service for multiple decades, as the equipment takes a long time to reach its Economic End of Life. Agencies continue to maintain, upgrade, and overhaul the equipment, as the cost of replacement far exceeds costs of maintaining. Take a look at most NYC subway cars. Most of them were built and put in services in 60s and 70s, and are still operational! NYC subway now has a capital program to procure new rolling stock over next few years! Think about how many miles the subway cars have travelled, how many maintenance cycles they have gone through, and how many upgrades each car may have received! 5 IE 492 Engineering Economics
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ECONOMIC LIFE OF AN ASSET (EXAMPLES CONT.) Short Economic Life / Short Replacement Cycle: Technology Equipment Mobile phones, Computers, Mobile devices etc. Technology is changing at a blink of an eye! Any technology purchased today is likely to become obsolete in about 6 months or less. How do companies deal with this? No, they do not replace or upgrade equipment until it is absolutely necessary! Think about any company – they are probably still operating PC’s with Windows 7 and the latest operating system available is Windows 10. When compared, the cost of upgrading all stations to Windows 10 far exceeds maintaining them, UNTIL, say Microsoft end support for older operating systems, and the company have to pay significant amount to Microsoft to continue providing patches for the same. I was faced with a decision whether to pay Microsoft close to $100,000 to continue maintaining an older operating system, or pay the vendor to continue to upgrade system to make it compatible with latest version of windows!
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