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Replacement Models

Assalam-a-Alikum Every buddy

I take lecture of chapter Replacement Models on page 198, 199 and 200 there are the example of topic Items Deteriorating with value of money in that calculation I am bit confuse in the value of P(n) and x=(1-v/1-v^2)P(n) can any buddy tell me the calculation that how P(n) and X value is calculated and please explain me any one value given in page 199-200 with mathematical expression Thank you.

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Replies to This Discussion

yr complete solution please 3rd assignment ??

math gruuuu

help me

yes buddy

Attachments:

Thanks a lot lot

welcome

how to find capital cost in replacement model table???

Resale value is capital value but first value of resale value is equal to capital value rest of the capital value are the addition of the upcoming value.

Like page 195

resale value: 3000,1500,750,375,200,200,200

purchase value given in the question Rs. 6000 capital value should be less  then purchase value

like

capital value: 3000, 3000+1500=4500, 4500+750=5250, 5250+375=5625, then

6000-200=5800, 6000-200=5800, 6000-200=5800

Capital value: 3000,4500,5250,5625,5800,5800,5800

when the last values is constant and the values are same then those values should be subtract from purchase value

thanks bro

welcome

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