Quadratic Trend Running Cost Replacement Model with Linear Trend Salvage and Predicted Inflation

The paper Quadratic Trend Running Cost Replacement Model with Linear Trend Salvage and Predicted Inflation is an attempt made to develop right replacement strategy to determine an age of equipment at which the replacement is most economical. The annual maintenance or running cost of equipment is assumed to follow quadratic trend and salvage as linear trend. Using trend equations along with parameters like money value, predicted inflation economic replacement model has been developed.