Maximum Expenditure Limit

Overview

Lists equipment items with life expectancy, purchase, and purchase price defined to provide a baseline for equipment replacement planning.

When to use

Use this report to compare repair cost against Maximum Expenditure Limit (MEL) when evaluating whether new equipment should be purchased.

Notes

  • If Repair Cost is more than MEL, the recommendation is that it is time to purchase new equipment.
  • The expected cost for new equipment is calculated by adding 3% to the equipment's original cost per year.
  • Approaching or exceeding projected useful life is not by itself sufficient reason to replace an item.
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