WEBVTT

1
00:00:01.780 --> 00:00:03.100
Every asset has an age

2
00:00:03.100 --> 00:00:04.360
where cost per year is

3
00:00:04.360 --> 00:00:05.420
at its lowest.

4
00:00:05.420 --> 00:00:07.660
Acquisition cost gets spread over

5
00:00:07.660 --> 00:00:10.060
more years, pulling the average down.

6
00:00:10.060 --> 00:00:12.600
Operating cost climbs as wear builds,

7
00:00:12.600 --> 00:00:13.820
pushing it back up.

8
00:00:13.820 --> 00:00:15.780
Where these two forces balance

9
00:00:15.780 --> 00:00:17.680
is the economic life, the point

10
00:00:17.680 --> 00:00:19.150
where keeping an asset stops

11
00:00:19.150 --> 00:00:20.780
being the cheaper option.