Analyzing Replacement Equipment Purchases

Abstract

This paper provides a guide for the use of a computer template to aid in analyzing the economic feasibility of major farm equipment replacement decisions. The template uses the Lotus 1-2-3 spreadsheet Version 2 or 2.01 program with an IBM or compatible computer. A worksheet and explanations are provided to accumulate the needed data and assumptions to expedite data entry. Step by step instructions help the user in the use of the template and suggestions are offered to help interpret the results. A copy of the template on a 5 ¼ inch diskette may be obtained from either author at cost.