I wrote this tool to help decision-making when you have have to repair or replace something.
It uses a pair of jeans as an example, but it’s meant to be generic. Just replace its parameters and let it calculate.
(I’m assuming as a currency and one as a time unit.
I also assume a %/year growth rate of your assets.)
|You are thinking about replacing a:|
|You have owned pair of jeans for:||year(s)|
|Replacing the pair of jeans would cost you:||$|
|Your pair of jeans is costing you in repairs:||$ / year|
|While the pair of jeans is undergoing repairs, you have a backup plan which costs you:||$ / year|
|Do you feel the pair of jeans at risk of a major, catastrophic, sudden failure?|
|Possibly… but maybe an ice cream would cheer me up again. (+5 $ / year)|
|I think I’ll have to pay a couple of fine dinners if that happens. (+50 $ / year)|
|Well, that would cost me about $.|
|Would a new pair of jeans have significant advantages, or technological advancements, over the old one?|
|Not really. I’m kind of emotionally bonded to the old one.|
|For starters, it wouldn’t look old. (+15% value over the old one.)|
|It has an improvement or two. (+30% value over the old one.)|
|The new one is way better! (+% value over the old one.)|
(Answer goes here, in case you were asking)