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? | |
| Not really. | |
| 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.) | |