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5 cards from this section. Quick, good the night before a test.
What does EAC stand for?
The acronym you use when discussing annual costs.
Name the two types of equipment discussed.
One is what you currently have.
What does EAC stand for?
Think about annual costs related to equipment.
True or False: Sunk costs should be considered in replacement analysis.
Remember what has already been spent.
Consider an equipment with an initial cost of 30,00,000 and a salvage value of 10,00,000 after 5 years with a 10% interest rate. Discuss the equivalency of costs if operating costs are projected at 2,00,000 per year.
Understand the impact of costs on long-term ownership.
Given the following information, analyze which equipment to retain: Defender EAC is 650,000, Challenger EAC is 610,000, but Challenger has higher initial repair costs. Discuss implications.
Consider both short term and long term costs.
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