3.2 - Economic Life of the Machine
Enroll to start learning
You’ve not yet enrolled in this course. Please enroll for free to listen to audio lessons, classroom podcasts and take practice test.
Practice Questions
Test your understanding with targeted questions
Calculate the downtime cost per hour for a machine costing 900 rupees with a downtime rate of 4%.
💡 Hint: Multiply the equipment cost by the downtime percentage.
What is the yearly obsolescence cost at 0.1 for a machine costing 900 rupees?
💡 Hint: Calculate the per-hour obsolescence cost and multiply by operating hours for the year.
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What percentage of downtime results in a cost of 54 rupees per hour for a machine valued at 900 rupees?
💡 Hint: Think about the initial percentage given and how that scales.
True or False: Obsolescence costs decrease with increasing machine age.
💡 Hint: Recollect the concepts discussed around equipment aging.
Get performance evaluation
Challenge Problems
Push your limits with advanced challenges
Given a machine with an initial investment cost of 900 rupees and cumulative downtime costs calculated over 5 years, outline a comprehensive strategy to optimize costs and determine optimal replacement time.
💡 Hint: Utilize cumulative calculations and compare yearly expenses.
Considering a different obsolescence rate than the one in calculations, hypothesize the impact on long-term machinery budgets and analyze the feasibility of early versus late replacements.
💡 Hint: Consider both initial investments and long-term maintenance factors.
Get performance evaluation
Reference links
Supplementary resources to enhance your learning experience.