In this study a formula has been developed to describe the influence of the change of cost level on such a mechanization prognosis, where is assumed that wages and machine costs bear compound interest. In the study there are some numerical examples.
In the formula p1 = annual per cent increase of wages, p3 = annual per cent increase of machine costs, p2 = sudden and incident per cent increase of machine costs, and tv = delay in the profitability of mechanization.
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