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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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yr complete solution please 3rd assignment ??
Thanks a lot lot
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
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