1

12,300

EU AC of operation - - ( 5,100 (P/F.20, 1) + 6,900 (P/P^O, 2) +3,700 (M» 20,3) + lO.SOO OP/T>20,4) + 12,300 (P/F.20, 5] (A/P. 20, 5) - -3,053 EU AB of resile - 0,000 (A/F,20, 4) - 0000

The EUAC plot is shown and the economic life is three years.

Cost

The above example demonstrates that if we continuously replace the system every three years, the financial effect is $13,579 per year. If we continuously replace the system for two or four years, the equivalent annual cost would be $13,608 and $13,788, respectively. Therefore, it is obvious that our best course of action is to replace the system with exactly the same system every three years.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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