Research on economic life evaluation of equipment under infinite plan

An infinite-plan span is a rational hypothesis for equipment development. Suppose that the initial acquirement and operation & maintenance cost are fixedness for subsequent weapon equipment, the paper builds the basic model of the economic life evaluation of equipment under an infinite-plan span on the condition of the replacement by the identical weapon equipment. On the basis of comparatively analyzing between traditional methods and this model, realize the comparative statics and sensitivity analysis of the economic life and the triggered dot of the operation & maintenance cost on change of the parameters. The operating & maintenance cost have significant impacts on the economic life decisions and forecasts. It offers a new method on the economic life evaluation and can further study it on condition of uncertainty and an inconstant growth rate.