Economic Research Institute Study paper
Utah State University
OBJECTIVE: This program is designed to aid the farm manager in deciding between keeping his presently owned mach ine or trading for a newer one. The approach is simple. An allowance for repairs is estimated, using the savings in fixed costs that would be expected by keeping the machine, plus the average annual repair cost during the period of ownership . If the repair allowance appears adequate for the extended period of use being considered, then serious consideration should be given to keeping the machine. There is no provision for considering tax advantages associated with purchasing new machinery.
Bond, Larry K., "Estimating Machinery Repair Allowance: Programmed for the Texas Instrument 59" (1979). Economic Research Institute Study Papers. Paper 394.