Practice Conclusion Of Lecture 8 (7) - Introduction to Defender and Challenger Equipment

Practice: Conclusion of Lecture 8

Lesson 7Introduction to Defender and Challenger Equipment

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9 questions

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

Question 1.
What is the operating cost of the challenger?
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Refer to the cost comparison section.
Question 2.
Define sunk cost.
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Think of costs that have already been incurred.
3Question 3.
What is the operating cost of the defender?
- ₹90,000
- ₹1,35,000
- ₹6,00,000
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Review the cost section to find the defender’s operating costs.
4Question 4.
True or False: Sunk costs must be considered in replacement analysis.
- True
- False
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Consider if past costs affect future strategies.
Question 5.
If the defender has an annual operating cost of ₹1,35,000 and a salvage value of ₹6,00,000 after 5 years, calculate the EAC assuming an interest rate of 10%. Is keeping it financially viable over the next 5 years?
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Apply interest factors and calculate numerical values.
Question 6.
Debate whether sunk costs should play any role in equipment replacement suggestions. Create arguments for why they should or shouldn't.
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Think about how each affects future decisions.

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