4.2 - Defender and Challenger Comparison
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Practice Questions
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Calculate the downtime cost if the equipment cost is 600 rupees per hour, and the downtime percentage is 4%.
💡 Hint: Use the formula: Downtime Cost = (Equipment Cost * Downtime Percentage) / 100.
What is the cumulative downtime cost for a machine with a downtime cost of 20 rupees per hour operating for 2000 hours?
💡 Hint: Multiply the hourly downtime cost by total operational hours in a year.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is the formula for calculating downtime cost?
💡 Hint: Think about how we represent percentages.
True or False: Economic life is the duration when maintenance costs are at their peak.
💡 Hint: Consider the concept of cost minimization.
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Challenge Problems
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A construction firm has two machines: Defender costing 900 rupees per hour, with cumulative costs rising significantly each year. The Challenger has an initial cost of 1,100 rupees but is predicted to reduce operational costs by 25% within the first year. Calculate when the Challenger would become cost-effective assuming 2000 hours of usage annually.
💡 Hint: Consider the cumulative costs across multiple years.
A factory uses a machine with a downtime rate of 10%. If the hourly cost is 1,000 rupees, calculate the potential savings over a year if a new machine with only 3% downtime is bought instead. Calculate costs over 2500 operational hours.
💡 Hint: Focus on how downtime impacts total yearly costs.
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