Practice Equipment Replacement Analysis Overview - 4.1 | 17. Downtime Cost Calculation | Construction Engineering & Management - Vol 1
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Knowledge

4.1 - Equipment Replacement Analysis Overview

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is the downtime cost per hour for equipment costing 900 rupees with a downtime percentage of 3%?

💡 Hint: Remember to calculate 3% of the total cost.

Question 2

Easy

How much is the yearly downtime cost for a machine operating 2000 hours at a rate of 27 rupees per hour?

💡 Hint: Multiply the downtime cost per hour by the total operating hours.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What is downtime cost calculated as?

  • Total Equipment Cost
  • Equipment Cost × Downtime Percentage
  • Operating Hours

💡 Hint: Focus on how we derive the cost based on a percentage.

Question 2

True or False: Obsolescence cost increases as the equipment ages.

  • True
  • False

💡 Hint: Consider what happens as machines age over time.

Solve and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A company has a machine that costs 1,200 rupees/hour and experiences a Downtime of 1.5% in the first year and 3.5% in the second year. Calculate the yearly downtime costs and cumulative downtime cost after two years.

💡 Hint: Each year calculate based on operation hours and percentages.

Question 2

If the obsolescence cost for the first three years is 0%, 0.05%, and 0.1% respectively, calculate the cumulative obsolescence costs for the third year based on equipment costs of 1,500 rupees/hour.

💡 Hint: Summing each year’s obsolescence after calculating respective costs.

Challenge and get performance evaluation