Rakesh Sahu
asked over 3 years ago
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2 Answers
acharya
answered over 3 years ago
1.Capital cost of the new assets : The higher cost of the equipment or asset must be considered and compared with the realizable value of the existing asset
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narahari
answered over 3 years ago
Market standing of the product: If the product is likely to become obsolete or go out of fashion in the near future, it will not be worthwhile to go in for plant replacement. Nature of the market – capability of absorbing the product manufactured by the new plant in its entirety at the anticipated price. Constraints on the resources required for the new plant.
