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!