Loading the lesson
Loading the lesson
Search AllRounder.ai
Search the courses, subjects, tracks, games and features, or jump straight to a page.
Search the courses, subjects, tracks, games and features, or jump straight to a page.
4 cards from this section. Quick, good the night before a test.
Define economic life.
Think about the concept of when it's most economical to use a machine.
What happens to costs after the economic life of a machine?
Consider what occurs as a machine ages.
What is economic life?
Think about when it’s best to use a machine.
True or False? As a machine ages, its obsolescence cost decreases.
Consider how new technology impacts older equipment.
A construction company has a bulldozer with an initial cost of 50,00,000. If its maintenance costs increase by 10% each year and depreciates at a flat rate of 4,00,000 a year, when should they consider replacing it to minimize total costs?
Consider both increasing maintenance costs and decreasing value.
Evaluate the impact of inflation on the decision to replace equipment worth 30,00,000 with an expected inflation of 5% annually over the next five years. What will be the price of the new machine in five years?
Use the formula for future value calculations.
5 more questions in this section. Enroll free to practise them all.
Enroll free