IDEAS home Printed from
   My bibliography  Save this paper

Determining the optimal moment for replacing equipment


  • Popescu, Eleodor


In the present work I tried to reach two main objectives. The first consists in determining whether the theoretical methods regarding the ascertainment of the optimal moment of replacement can be used as tools in adopting a decision of replacement and upgrade of fixed mechanisms in a company. The second objective is to support those investors or managers who, having a technological professional educational background, do not have the possibility to finish studies in the economic field, with emphasis on the information and working techniques necessary for adopting and implementing a development investment decision. Many times the most efficient technical or high-performing solutions, proposed by engineers, do not provide the best solutions or financial effects, determined by economists. That is why there are often contradictions or even conflicts between the approach method and that of putting into practice the company’s activities, especially investments.

Suggested Citation

  • Popescu, Eleodor, 2011. "Determining the optimal moment for replacing equipment," MPRA Paper 31720, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:31720

    Download full text from publisher

    File URL:
    File Function: original version
    Download Restriction: no

    More about this item


    Investments; development investments; fixed mechanisms; operating period; efficiency; optimal replacement moment; modernized plant; update coefficient.;

    JEL classification:

    • D2 - Microeconomics - - Production and Organizations

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:31720. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter) or (Rebekah McClure). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.