What is the economic life of the equipment?

Economic life of equipment

Introduction:

The economic life of equipment refers to all the time from the time when the equipment is put into use (or idle) to the time when it continues to be used in an economically unreasonable position due to tangible and intangible wear (depreciation), that is, from the date when the equipment is installed and put into use in a brand-new state to the year when the annual total life cost is the lowest and it is forced to quit the original service function.

The renewal of equipment generally depends on the economic life of equipment. As long as the average cost of equipment is minimized, the economic life of equipment can be determined.

Influencing factors of equipment life:

① Technical composition of equipment

② Equipment cost

③ Processing object

④ Production type

⑤ Working shifts

⑥ Operation level

⑦ Product quality

8. Maintain quality.

Pet-name ruby environmental requirements.

Estimation method: There are two methods to determine the economic life of equipment: static mode and dynamic mode.

Static mode:

Economic life of equipment CN=(P-LN)/N+ 1/N×∑Ct, where CNN's annual average use cost of equipment, p is the current use value of equipment, Ct is the operating cost of equipment in t years, LN is the net salvage value of equipment at the end of n years, (P-LN)/N is the annual average asset consumption cost of equipment,1n.

Because the longer the equipment is used, the more serious the tangible and intangible wear of the equipment is, which leads to the greater the maintenance cost of the equipment. This kind of δCt with increasing cost is called inferior equipment. The method of expressing equipment loss with low value is called low value method.

The economic life of the equipment N0=√2(P-LN)/λλ is the inferior value of the equipment.

Dynamic mode:

The economic life of equipment is to consider the time value of funds, calculate the annual net value NAV or annual cost AC of equipment, and determine the economic life N0 of equipment by comparing the annual average benefit or annual average cost. The determination method of.

When the annual net value is used to estimate the economic life of equipment, find out the minimum annual average cost NAVmin (when the project takes expenditure as the main consideration) or the maximum annual average profit AVmax (when the project takes income as the main consideration) and their corresponding years, so as to determine the economic life of equipment.