Summary
Replacement and retirement decisions are a special case of the for-profit decision analysis techniques presented in Chapter 10. This chapter explained why replacement and retirement decisions happen and what's unique about them. This chapter also showed how to address that uniqueness in the decision analysis. The chapter covered the following major points:
Replacement decisions happen when an organization already has a particular asset and they are considering replacing it with something else, such as deciding between keeping a legacy software system and redeveloping it from the ground up.
Replacement decisions use the same decision process as was presented, but there are additional challenges that complicate the decision analysis: sunk ...
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