2.1. Hourly Maintenance and Repair Costs

Try these first

1. 1.

   Define economic life in your own words.

   Hint

   Consider how costs change over time.

2. 2.

   What is downtime?

   Hint

   Think about machine's operational time.

3. 3.

   What does economic life refer to?

   • A. The cost of running a machine
   • B. The optimal time to continue using a machine
   • C. Both A and B
   • D. None of the above

   Hint

   Focus on cost-effectiveness.

4. 4.

   Is downtime a cost?

   • True
   • False

   Hint

   Think about productivity impacts.

5. 5.

   Calculate the total projected maintenance costs and downtime costs for a machine over its 8-year economic life, including annual increases and downtime percentages.

   Hint

   Accumulate yearly costs for a total across the economic life span.

6. 6.

   Discuss the implications of obsolescence if a similar model with advanced technology comes to the market after five years.

   Hint

   Consider competitive advantages of updated technology.