Engineering Economics2D
Replacement Analysis - Theory & Concepts
Determining when an existing asset should be replaced by calculating Economic Service Life (ESL) and analyzing Defender vs Challenger.
Open the complete lessonEconomic Service Life (ESL) Visualizer
Initial Cost ($P$)20,000 $
Base Annual Operating Cost2,000 $
AOC Annual Increase Gradient1,000 $ / yr
Market Value Deprec. Rate20 %
Interest Rate (MARR)10 %
Economic Service Life (ESL)3 YearsMinimum EUAC: $7,885 / yr
Loading chart...