Abstract
There is nothing new about the basic problems encountered when replacing manufacturing equipment since we have been doing it for thousands of years at an accelerating rate. Often, it does not take any fancy figuring to tell us that a replacement is required. The basic reasons for replacement have not changed, except that the pressure for change has increased under present-day competition and advancements in technology. We find ourselves confronted with larger capital expenditures to keep up with the drive on reducing unit cost and increasing quality. Furthermore, there is competition between various equipment proposals and other projects in their demands on capital funds. The author discusses various principles on which the economic replacement of equipment must be based.
