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H2 - You Can Defer Replacement But You Cannot Deny It 
Date/Time:
June 10, 2014   9:30am - 10:45am
 
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When to replace equipment assets and how much to invest each year is an interesting, complex, and critically important issue. This session will briefly review the theory that drives the replacement decision and present workable tools that can be e effectively used to assist in long-term capital replacement planning. At the end of the session, attendees will be able to:
  • Apply the concept of economic life to support the replacement decision
  • Understand the importance of fleet average age in replacement planning
  • Use the very pragmatic notion of “buy what you burn” to produce rational and defendable long-term capital investment budgets
  • Use a number of simple graphics to illustrate and drive home the importance of developing a well-considered long-term replacement strategy
 


 
 
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