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2 cards from this section. Quick, good the night before a test.
What is the definition of Economic Useful Life?
Think about the importance of cost in keeping a machine.
What do we call the existing equipment in our project?
It is the term for the old machine being used.
What is the defender in equipment management?
Remember the term we used for existing machines.
True or False: Obsolescence costs can impact replacement decisions.
Consider what happens in the market with older machines.
A company has an excavator with an initial cost of $100,000. It incurs maintenance costs yearly of $10,000, and the projected resale value after 5 years is $30,000. Calculate the total cost of ownership for 5 years.
Add maintenance costs over the 5 years and subtract resale.
Evaluate the rationale for replacing a concrete mixer that is constantly breaking down, incurring $3,000 in repairs a month. Should it be replaced if a new mixer costs $30,000?
Compare annual repair costs with the purchasing cost of new equipment.
4 more questions in this section. Enroll free to practise them all.
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