Yatsenko, Yuri; Hritonenko, Natali - In: International Journal of Production Economics 133 (2011) 2, pp. 596-602
The economic life (EL) method of asset replacement is analyzed under improving technology that impacts the maintenance cost, new asset cost, and salvage value. In particular, we prove that the asset EL is constant when all these costs decrease with the same rate. If these costs decrease...