Construction Engineering & Management - Vol 1 | 16. Economic Life of a Machine by Abraham | Learn Smarter
K12 Students

Academics

AI-Powered learning for Grades 8–12, aligned with major Indian and international curricula.

Professionals

Professional Courses

Industry-relevant training in Business, Technology, and Design to help professionals and graduates upskill for real-world careers.

Games

Interactive Games

Fun, engaging games to boost memory, math fluency, typing speed, and English skills—perfect for learners of all ages.

Typing
Memory
Math
English Adventures
Knowledge
16. Economic Life of a Machine

The economic life of machinery is defined as the period during which the cost of owning and operating the machine is minimized. It involves an analysis of various cost factors including repair, maintenance, downtime, and obsolescence and how they impact overall costs over time. This chapter presents a systematic approach to estimating the economic life through the application of the double declining balance method for depreciation and replacement analysis.

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.

Sections

  • 1

    Economic Life Of A Machine

    This section explores the concept of economic life in machines, detailing how costs associated with machine ownership can escalate beyond a certain period.

    Learning Practice

  • 1.1

    Introduction To Economic Life

    This section discusses the concept of economic life, detailing the optimal period for machinery use to minimize costs associated with operating, maintenance, and obsolescence.

    Learning Practice

  • 1.2

    Example Of Estimating Economic Life

    This section explores the concept of economic life and its significance in machine cost estimation, including how to identify optimal replacement times based on associated costs.

    Learning Practice

  • 2

    Parameters For Replacement Analysis

    This section explores the factors that determine the economic life of machinery and the essential concepts behind replacement analysis.

    Learning Practice

  • 2.1

    Hourly Maintenance And Repair Costs

    This section discusses the economic life of machines, focusing on maintenance and repair costs associated with machine use and replacement.

    Learning Practice

  • 2.2

    Downtime Costs

    This section explores the concept of economic life in machinery and how downtime costs, maintenance, repair, and obsolescence can affect total costs over time.

    Learning Practice

  • 2.3

    Obsolescence Costs

    This section discusses the concept of obsolescence costs, the reasons for increased costs associated with aging machinery, and the importance of analyzing the economic life of equipment to optimize replacement timing.

    Learning Practice

  • 3

    Costs Associated With The Machine

    This section discusses the concept of economic life and the associated costs of holding a machine, highlighting the significance of replacement analysis.

    Learning Practice

  • 3.1

    Replacement Cost Estimates

    This section discusses the economic life of machinery and the factors affecting replacement cost estimates.

    Learning Practice

  • 3.2

    Depreciation Calculation

    This section explains the concept of economic life and depreciation calculation, focusing on the costs associated with maintaining and replacing machinery.

    Learning Practice

  • 3.3

    Loss Associated With Replacement

    This section discusses the economic life of machines and the associated costs of replacing old machines to minimize losses.

    Learning Practice

  • 3.4

    Cumulative Usage And Costs Per Hour

    This section discusses the economic life of machines, emphasizing the need for timely replacement to minimize costs and optimize usage.

    Learning Practice

  • 4

    Investment Costs

    This section discusses the concept of investment costs related to machines, focusing on their components like depreciation, maintenance, and obsolescence.

    Learning Practice

  • 4.1

    Calculation Of Investment Costs

    This section covers the concept of economic life in machinery investment, detailing how to calculate costs associated with machine ownership and operation.

    Learning Practice

  • 4.2

    Cumulative Investment Costs

    This section explains the concept of cumulative investment costs, focusing on economic life, depreciation, and replacement analysis of machinery.

    Learning Practice

  • 5

    Maintenance And Repair Costs

    This section explains the economic life of machinery, maintenance and repair costs, and how these factors influence replacement decisions.

    Learning Practice

  • 5.1

    Calculation Of Maintenance And Repair Costs

    This section discusses the concept of economic life in machines, detailing how to calculate maintenance, repair, and replacement costs over time.

    Learning Practice

  • 5.2

    Cumulative Maintenance Costs

    This section discusses the economic life of machinery and the cumulative costs associated with maintenance, including depreciation, repair costs, and obsolescence, emphasizing when to replace equipment.

    Learning Practice

  • 5.3

    Downtime Costs Calculation

    This section focuses on calculating the economic life of a machine and analyzing downtime costs related to its operation and maintenance.

    Learning Practice

References

6 b.pdf

Class Notes

Memorization

What we have learnt

  • Economic life refers to the...
  • Depreciation using double d...
  • Factors like maintenance, d...

Final Test

Revision Tests