by introducing a fixed running cost, FC. Cells C11:D18 will now contain appropriate formulae. When an eight-year

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by introducing a ‘fixed running cost’, FC. Cells C11:D18 will now contain appropriate formulae. When an eight-year period is considered, the equipment should be replaced after five years with a corresponding equivalent cost of £15,653. When a twelve-year period is considered, the optimum replacement period now becomes eleven years with a corresponding cost of £15,216.)

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