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Politics : Formerly About Applied Materials

AMAT 242.41

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3:59 PM EST

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To: Steve Robinett who wrote (13723)	12/21/1997 7:02:00 PM
From: ratan lal	Read Replies (1) of 70976

Steve << If one of the farmers buys a machine that lets him produce 15 potatoes per acre for an hour's work, he can spread the cost of the machine over many seasons and sell his potatoes cheaper >> Simple is right. You forget the cost of depreciation, repair and replacement. If it depreciates faster than the # of years of additional 5 lbs per acre generated, then he is essentially losing money. This is exactly what happens in Semis. before teh m/c is fully depreciated, it needs to be replaced to stay competetive. ratan

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