Practice Replacement Analysis (6) - Equipment Life and Replacement Analysis (Part-1)

Practice: Replacement Analysis

Lesson 6Equipment Life and Replacement Analysis (Part-1)

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9 questions

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3 questions · about 2 min · pass mark 70%. Hints available.
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6 sample questions

Question 1.
What are the phases of equipment life?
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Think about what happens when equipment wears out.
Question 2.
What does defender refer to in equipment analysis?
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It is the machine you might eventually replace.
3Question 3.
What does economic useful life denote?
- The lifespan of the machine
- When costs are minimized
- The total time of use
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Think about cost efficiency.
4Question 4.
True or False: Downtime refers only to repairs needed on equipment.
- True
- False
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Consider other factors that lead to inactivity.
Question 5.
A construction manager must decide whether to keep an excavator that is 12 years old. The running costs have increased by 40% over the last year, and a new model promises a 25% reduction in operating costs. Analyze the replacement decision using economic life principles.
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Consider both the rising costs and the potential savings.
Question 6.
You have two options: keep your current mixer that has frequent breakdowns but is not yet dead, or replace it with a state-of-the-art model. Estimate downtime costs over a year and compare against new mixer costs to justify your decision.
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Account for all indirect costs that come with downtime.

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