INSTRUCTIONS

Replacement Theory solves Individual Replacement Problems [with time value of money as well as without time value of money] and Group Replacement Problems.

Individual Replacement

Individual Replacement Problem tab solves problem with time value of money as well as without time value of money.

• Enter the Purchase Price of the Equipment & Discount Rate if any; also, provide number years for which the data available for calculations
• Press Generate Button
• This action generates the table with as many rows you request for input data available
• Enter the Operating Cost, Maintenance Cost and Salvage Value [if the data is not available, default value zero enters the cell] & Press solution
• Save option allows you to save the problem data to the local system storage as a ‘.txt’ file
• Solution page contains Input Window details and Result Table.
• It also contains an indication of the year in which the equipment to be replaced
• There is an option to save the solution as a PDF file