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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?
@ 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…
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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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