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Determining the optimum moment to replace the depreciable tangible assets

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Author Info

  • 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.

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File URL: http://feaa.ucv.ro/RTE/010-02.pdf
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Bibliographic Info

Article provided by University of Craiova, Faculty of Economics and Business Administration in its journal Revista Tinerior Economisti(The Young Economists Journal).

Volume (Year): 1 (2008)
Issue (Month): 10 (April)
Pages: 18-21

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Handle: RePEc:aio:rteyej:v:1:y:2008:i:10:p:18-21

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Related research

Keywords: tangible assets; depreciation; technical progress; breakeven; efficiency;

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