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FMreplacement

Jjimama15y ago
I don't quite understand, when calculating the 2 years replacement, why do we have to include the maintenance fee for the 2nd year since we are going to sell the asset at the end of 2nd year?
Yyousouf15y ago#1
@ jimama I think the reason behind this is is to take into account all cost and we replace the assets in the year which we have the lowest EAC...
Former userFormer user15y ago#2
Jimama.. when selling a car and you want a value more than you anticipated ...you will be forced to maintain your vehicle before sale.. No buyer would buy a faulty asset during sales ...except it is for scrap
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