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Return on Investment Calculation for Equipment Replacement
Norbert Lepathy, Member
How to calculate payback period when a company is investing in new equipment to replace old ones. For example an airline is investing in ground power units for aircraft engine start up. The new equipment will not bring any revenues.
Thanks for your suggestions….
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Saved/Avoided Expenses and CostsGHEZALA MOUNSIF, Member The new investment is likely going to reduce the maintenance and repair costs (including man hours and especially the savings of not having the airplane on the ground, being unable or not allowed to fly. The return on investment period can be calculated based on these saved/avoided/prevented expenses and costs. |
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