Practice Construction Methods And Equipment Management (1) - Equipment Life and Replacement Analysis (Part-1)

Practice: Construction Methods and Equipment Management

Lesson 1Equipment Life and Replacement Analysis (Part-1)

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8 questions

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3 cards from this section. Quick, good the night before a test.
Exercise
6 questions · about 4 min · pass mark 70%. Hints available.
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Quiz
2 questions · about 1 min · pass mark 70%. Hints available.
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6 sample questions

Question 1.
Define the term 'economic life' as used in equipment management.
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Think about what this term signifies in terms of costs.
Question 2.
What does 'defender' refer to in the context of this section?
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Consider the terminology around equipment comparison.
3Question 3.
What does 'economic life' refer to in equipment management?
- The total lifespan of the equipment.
- The time when costs are minimized and profits maximized.
- The moment a machine breaks down.
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Consider the definition of economic life discussed in class.
4Question 4.
True or False: The defender is the new machine being considered for replacement.
- True
- False
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Think back to the definitions provided.
Question 5.
An excavator has a physical life of 15 years. It has been in operation for 12 years and is incurring increasing maintenance costs. Based on the principles discussed, when should management consider replacing it?
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Think about the functions of profit and economic life.
Question 6.
You're faced with two models: one defender that is more costly to maintain after 5 years and a new challenger that offers better efficiency and lower costs. How do you justify the replacement?
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Consider both past costs and future projections to evaluate the decision.

4 more questions in this section. Enroll free to practise them all.