My blog posts are a reflection of my thoughts, beliefs, stuff that I figured out. It's quite possible that there are articles by other authors that were perhaps written much earlier, some of which align with my thoughts and some that don't. Pls read the "About Me" para to understand more.
Monday, August 24, 2020
Smart Expense Analysis
Recently I went to get my bike serviced at the authorized service center. The bike is more than 10 years old and I was thinking of exchanging it for a new one. I was told the servicing would cost Rs 2000 to Rs2500. I asked the service engineer how much I would get for my bike. The guy told me that my bike would fetch Rs5000 approximately.
I thought. What sense did it make to spend Rs 2000+ on servicing my bike whose value was Rs 5000?
Here was an interesting question. The cost of a new bike was Rs 60,000. And my bike was in good condition. If I got it serviced, I was sure I could use it for at least one more year easily without problem.
Why incur cash outflow of Rs 60k and incur about Rs 5k depreciation for the current year (=(60-5)/12) assuming straight line depreciation and 12 years life and scrap value of Rs5k) for new bike when I could service it for Rs 2500 and no cash outflow.
So I got it serviced. I will worry about a new bike next.
Sometimes, what seems at face value may not be right!
Subscribe to:
Post Comments (Atom)
Popular Posts
-
Jokes Godfather's horse Why buy the cow Tom and Jerry Dogs in a bar Standup comedian about IIT, IIM Pizza delivery guy and gynecologist ...
-
Guruji gave me this puzzle. Try to solve this puzzle. She said only 1 Out of 100 Has been able to solve this. If you’re able to solve...
-
http://www.npr.org/sections/health-shots/2017/10/27/560268250/does-smoking-pot-lead-to-more-sex - this is an interesting article that see...
-
I have always loved " The Class " by Segal. I was searching for it online. I am unable to find it. But h ere is "Love Story...
-
I have been to some Shiva temples. And I have come to know about some temples recently which I have not yet visited. These are some popula...
Labels
Friends
(325)
Character
(240)
Analysis And Prediction
(216)
India
(131)
Miscellaneous
(125)
Maths and Puzzles
(111)
Relationship
(82)
Personality
(72)
Politics and Corruption
(60)
Emotions
(59)
Money and Business
(57)
Medical
(52)
Movies
(52)
Hindi and Tamil
(42)
Education
(41)
USA
(41)
Freewill And Evolution
(38)
Photos and Videos
(35)
Books
(32)
Religion
(31)
Legal
(25)
Birds And Animals
(24)
Criminal
(22)
Travel
(20)
Europe
(19)
Recipe
(19)
Music
(16)
Asia
(15)
Astrology
(15)
Pakistan
(15)
Cars and Trains
(14)
Internet
(14)
Trump
(14)
Corona
(13)
Phones And Gadgets
(13)
UK
(13)
Venus
(11)
Babies And Children
(10)
Kashmir
(9)
China
(8)
Russia
(8)
Sports
(8)
Art and Culture
(7)
Africa
(5)
Blog
(5)
Rape
(5)
Rest Of The World
(5)
Terrorism
(5)
Jokes
(4)
Marketing
(4)
Ukraine
(4)
real estate
(4)
History And Geography
(3)
Weather
(2)
Adani
(1)
Boris
(1)
France
(1)
Hungary
(1)
Incomplete Or Wont Publish
(1)
McCarthy
(1)
Santos
(1)
Social Media
(1)
Featured Post
Whom Do We Trust
I came across this: APNews being the trusted source of news for half the world. And there is Truth Social which also is read and trusted by...
No comments:
Post a Comment