Practice Construction Methods And Equipment Management (1) - Equipment Life and Replacement Analysis (Part 3)

Practice: Construction Methods and Equipment Management

Lesson 1Equipment Life and Replacement Analysis (Part 3)

Practise this section

11 questions

Flashcard drill
3 cards from this section. Quick, good the night before a test.
Exercise
6 questions · about 4 min · pass mark 70%. Hints available.
Sign up to start the exercise
Quiz
5 questions · about 3 min · pass mark 70%. Hints available.
Sign up to start the quiz

6 sample questions

Question 1.
Define the term 'sunk cost'.
Show hintHide hint
Think about costs that you can't get back once spent.
Question 2.
What does EAC stand for?
Show hintHide hint
It's something annual that helps analyze costs.
3Question 3.
What does EAC stand for?
- Annual Equipment Cost
- Equivalent Annual Cost
- Equipment Analysis Cost
Show hintHide hint
Think of what EAC influences in decision-making.
4Question 4.
Sunk costs are relevant in replacement analysis.
- True
- False
Show hintHide hint
Recall what defines sunk costs.
Question 5.
A construction firm plans to replace machinery valued annually at a decline rate of 25%. Assess its economic life modeled until it costs more to run it than to replace it. Develop a cost-benefit chart using EAC.
Show hintHide hint
Analyze costs thoroughly to spot replacement points effectively.
Question 6.
Given two competing machines, one incurs higher operating costs but has a lower initial investment, while the other has a higher initial cost but lower operational costs. Use EAC to recommend the optimal replacement choice considering a 10-year life span.
Show hintHide hint
Display findings clearly using comparative visuals.

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