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Determining the optimum moment to replace the depreciable tangible assets

Author

Listed:
  • Baluna Radu
  • Ionascu Costel

    (University of Craiova, Faculty of Economics and Business Administration, Romania)

Abstract

Promoting the technical progress by developing, modernizing and refitting the existent capacity is a very complex action from the economic point of view, sometimes difficult to accomplish, but that generates some of the best results for the activity of the entity. Determining the optimum moment to replace some pieces of equipment and taking the best decision in buying new equipment play an important role in this activity. Determining the optimum moment to replace the equipment by means of economic calculation of the efficiency has to take into account many factors, of which, most important are the specific conditions in which each asset functions and the influence of the technical progress.

Suggested Citation

  • Baluna Radu & Ionascu Costel, 2008. "Determining the optimum moment to replace the depreciable tangible assets," Revista Tinerilor Economisti (The Young Economists Journal), University of Craiova, Faculty of Economics and Business Administration, vol. 1(10), pages 18-21, April.
    • Handle: RePEc:aio:rteyej:v:1:y:2008:i:10:p:18-21
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    File URL: http://feaa.ucv.ro/RTE/010-02.pdf
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    More about this item

    Keywords

    tangible assets; depreciation; technical progress; breakeven; efficiency;
    All these keywords.

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General
    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting

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