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Economic Life Analysis for Machinery Replacement Decisions

Published by the American Society of Agricultural and Biological Engineers, St. Joseph, Michigan www.asabe.org

Citation:  Transactions of the ASAE. 19 (5): 0819-0822. (doi: 10.13031/2013.36126) @1976
Authors:   C. L. Peterson, J. H. Milligan
Keywords:   

ABSTRACT THIS paper discusses economic life 1 as a method for optimizing purchase and replacement decisions with potato harvesting equipment used as the specific example. The method is based on determination of minimum annual equivalent costs which consist of capital recovery costs and the annual operation and maintenance costs. A computer program was developed which computed and tabulated these costs for all likely combinations of machine acquisition and retirement ages.

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