Practice Outline Of The Lecture (3) - Equipment Life and Replacement Analysis (Part-1)

Practice: Outline of the Lecture

Lesson 3Equipment Life and Replacement Analysis (Part-1)

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10 questions

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6 sample questions

Question 1.
Define economic useful life.
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Think about what makes operational costs lower.
Question 2.
What do we call the current machine that may be replaced?
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It's the opposite of challenger.
3Question 3.
What is the economic useful life?
- Time when costs are minimized
- Time when maintenance is maximum
- Time when productivity is halved
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Focus on cost management.
4Question 4.
True or False: Downtime costs do not affect project profitability.
- True
- False
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Consider what happens when machines are out of service.
Question 5.
A construction company used a bulldozer that costs $10,000 a year in maintenance and operational costs. A new bulldozer costs $20,000 upfront but only $2,000 annually to maintain. Determine the break-even point when to replace the old bulldozer.
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Calculate how much total costs would be over time.
Question 6.
Given a piece of construction equipment has been less productive over three years, document how to evaluate whether to keep holding it or replace it. Include factors to analyze.
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Think about cumulative losses vs. new opportunities.

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